The Nigerian naira weakened modestly against the US dollar on Friday, August 14, but remained relatively stable as foreign-exchange trading continued without the sharp swings seen during periods of heightened market pressure.
The naira traded at ₦1,364.83 per dollar in the Nigerian Foreign Exchange Market (NFEM), according to data published by the Central Bank of Nigeria (CBN). The NFEM rate is derived from the volume-weighted average of completed transactions and serves as the official exchange rate for the day.
Friday’s rate represented a ₦7.18 depreciation, or approximately 0.53 per cent, from Thursday’s ₦1,357.65/$1. The movement indicates a relatively limited shift in the official market despite continued demand for foreign currency.
In the parallel market, the dollar was quoted at around ₦1,405, according to market reports, leaving a gap of roughly ₦40.17 per dollar between the two markets.
The parallel-market rate is an informal market indication rather than an official CBN benchmark, and prices can vary by location, dealer and transaction size.
At the NFEM rate, $100 was equivalent to about ₦136,483, while $100 at ₦1,405 in the parallel market would be worth approximately ₦140,500.
The relatively narrow spread between the official and parallel markets provides some evidence of improved price alignment compared with periods when Nigeria’s foreign-exchange markets experienced substantially wider differentials.
The latest stability is important for businesses that rely on imported inputs, foreign-currency payments and international trade. A more predictable exchange rate can improve cost planning and reduce uncertainty for companies exposed to dollar-denominated obligations.
However, sustained stability will depend on the availability of foreign currency and the balance between demand and supply. Export earnings, crude-oil receipts, diaspora remittances and other foreign-exchange inflows remain important to Nigeria’s dollar liquidity.
The CBN’s management of market liquidity will also remain critical. Any sustained deterioration in dollar supply or sharp increase in demand could place renewed pressure on the naira.
For now, Friday’s trading points to a relatively orderly market, with the official rate remaining around the mid-₦1,300 range and the parallel market close to ₦1,400. The direction of foreign-exchange flows in coming sessions will determine whether that stability can be sustained.
