Naira Holds Flat on Parallel Market as CBN Dollar Supply Steadies

The naira maintained relative stability in the parallel market on Thursday, trading in a narrow range of ₦1,570 to ₦1,585 per dollar across Bureau de Change operators in Lagos and Abuja, as the Central Bank of Nigeria's steady injection of foreign exchange supplies kept pressure at bay.

The rate represents a marginal appreciation from the ₦1,595 level seen earlier in the week, reflecting reduced panic demand following clearer communication from the CBN about its intervention strategy.

**CBN Intervention Mechanism**

The central bank has been supplying dollars to the market through weekly intervention windows, selling foreign exchange to authorised dealers at rates close to the official market. Traders say the predictability of these interventions has helped reduce the speculative positioning that amplifies naira volatility.

A CBN spokesperson confirmed that the bank would continue its intervention programme as long as market conditions warranted support, but declined to specify the total amount disbursed this week.

**Official vs Parallel Rates**

The spread between the CBN's official rate and the parallel market rate has narrowed significantly in recent months, falling from a peak of over ₦200 per dollar to less than ₦50 in some sessions. Market observers say this compression reduces the incentive for currency round-tripping and black market arbitrage.

**Business Implications**

Importers and small businesses that have historically relied on Bureau de Change operators to source foreign exchange for trade payments have cautiously welcomed the calmer market environment. Several traders said they were able to complete forex transactions this week at rates closer to official levels than they had experienced in months.

However, exporters and diaspora remittance recipients remain watchful, noting that the stability has not yet translated into meaningful naira appreciation at the official rate.

**Outlook**

Currency analysts say the relative calm is likely to hold in the near term, provided oil revenue receipts continue to flow in at current levels. Any significant drop in crude prices or renewed import demand pressures could test the CBN's capacity to sustain intervention.