>span class="s2"> naira closed mid-week trading at 1,423 to the dollar in the official foreign exchange market, extending a pattern of mixed performance that contrasts sharply with continued weakness in the parallel market.

Data from the Central Bank of Nigeria and Nairametrics Research show that while the official market remains relatively stable, pressures persist outside the regulated window, highlighting structural challenges in the currency market.

At the Nigerian Foreign Exchange Market, the naira traded at 1,420.5 to the dollar on Monday, strengthened slightly to 1,420 on Tuesday, before depreciating to 1,423 on Wednesday. Last week, the currency opened at 1,425 and gradually appreciated to close at 1,417.95, reflecting intermittent gains in the official window.

Meanwhile, the parallel market has continued to show persistent weakness. The naira opened at 1,483 on Monday, held steady on Tuesday, and weakened further to 1,486 on Wednesday. The gap between the official and parallel market rates narrowed slightly to 63 naira from 73 naira last week, the widest margin since February 2025, but remains significant.

“While official rates show some convergence, the parallel market continues to experience intense foreign exchange demand,” said a currency analyst at Nairametrics. “This current rally outside the official window is the worst since mid-December 2025, when the naira fell to 1,492 on December 17.”

Between December 11 and 22, 2025, the currency sustained trading above the 1,480 psychological barrier, highlighting recurring stress in the informal foreign exchange market. Analysts say the persistence of wide gaps underscores structural constraints that continue to influence the naira’s performance.

Stability in the official market reflects the central bank’s ongoing reforms and interventions to manage currency flows, support investor confidence, and narrow the divide between the formal and informal trading windows.

Global currency developments also provide context for Nigeria’s exchange rate dynamics, adding another layer of complexity to the naira’s trajectory. Observers note that while short-term gains are possible in the official market, structural pressures are likely to continue dominating parallel market trading until deeper reforms take hold.

As Nigeria’s currency navigates these competing forces, analysts emphasize that bridging the gap between official and parallel rates will be critical for stabilizing the naira and supporting broader economic growth.