Naira Falls by ₦11.37 Against Dollar at Official Market, Gains in Parallel Trading

The Nigerian naira saw mixed performance in the currency markets on July 16, 2025, depreciating sharply by ₦11.37 against the US dollar at the official market, while registering an appreciation in the parallel (black market) segment.

At the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira closed at approximately ₦1,529 per US dollar, slipping from previous levels and marking a loss of ₦11.37 in value compared to the preceding session.

This downward movement reflects ongoing pressures in the official market where foreign currency supply constraints and demand from importers continue to affect exchange rate stability.

In contrast, the parallel market offered a more optimistic outlook for the currency. The naira appreciated against the dollar reaching rates as favorable as ₦1,540–₦1,550 per dollar, compared to weaker showings earlier in the month.

Dealers attributed the gain to improved dollar liquidity and less speculative demand as some holders took profits or shifted focus amid expectations of regulatory intervention.

Economists note that the divergence points to continuing volatility in the forex system. While the depreciation at the official window could increase operating costs for businesses dependent on dollar inputs the parallel market strength could provide temporary relief for non-official dollar seekers.

The Central Bank is expected to monitor the situation closely, with analysts anticipating further measures if exchange rate pressures persist.

The naira’s performance remains a barometer of broader economic forces, including inflation trends, foreign reserves levels, and Nigeria’s ongoing reforms in the forex sector.