Naira Slides in Black Market, Steady at Official Window on Oct 20

The naira marginally declined against the U.S. dollar on Monday, October 20, at the parallel market, while it retained its strength at the Nigerian Foreign Exchange Market (NAFEM).

Currency dealers in Abuja told Economic Confidential that the naira traded at ₦1,485/$1 for buying and ₦1,495/$1 for selling, representing a ₦5.33 depreciation compared to Friday’s closing rate of ₦1,490/$1.

At the official window, the local currency remained steady at ₦1,475/$1, unchanged from the weekend’s closing rate.

Analysts attributed the naira’s relative stability to the Central Bank of Nigeria’s (CBN) ongoing interventions aimed at enhancing market liquidity and exchange rate stability. However, they cautioned that persistent dollar shortages, strong import demand, and policy uncertainty continue to weigh on long-term exchange rate sustainability.

They further noted that a stronger reserve position gives the CBN greater capacity to intervene in the FX market, thereby reducing the risk of sharp devaluations or speculative attacks on the naira. The recent cancellation of dubious FX contracts, they added, signals improved governance and growing market confidence.