Key Takeaways
- The naira opened the new week with little movement, holding near the latest official rate of N1,346.49 per dollar.
- The parallel market remained around N1,405 per dollar, leaving a gap of roughly N58.10 with the official closing rate.
- External reserves stood at $52.66 billion as of August 19, helping to support currency stability.
The Nigerian naira entered the new trading week without major swings against the United States dollar, as the official and parallel markets continued to trade within a familiar range. The latest confirmed official rate from the Central Bank of Nigeria came from Friday's session, when the Nigerian Foreign Exchange Market closed at N1,346.90 per dollar. The published NFEM rate for that day was N1,346.49.
Official Market Holds Its Ground
The Friday NFEM rate represented the volume-weighted average of transactions carried out in the official market. It marked an improvement of N1.14 from the previous day's rate of N1,347.63. On a week-on-week basis, the naira strengthened by N11.12. During Friday's trading session, the dollar moved between N1,342 and N1,348 before settling at the official closing rate.
For Monday, August 24, 2026, the CBN had not yet published the new NFEM rate at the time of reporting. Market participants were watching the official window closely, while a separate live benchmark quoted the dollar at about N1,348.88 against the naira on Monday morning, broadly close to the official level.
Parallel Market and the Premium Gap
In the parallel market, the naira was quoted at roughly N1,405 per dollar, according to AbokiFX data from Friday. That rate was unchanged from Thursday's level. The difference between the official closing rate of N1,346.90 and the parallel market quote of N1,405 stood at about N58.10 per dollar.
Actual exchange rates available to individuals and businesses can still vary by bank, Bureau de Change operator, location, transaction size, and intraday market conditions. Parallel market quotations are indicative and often shift during trading hours.
What Is Supporting the Naira
The naira's recent stability has been underpinned by improved foreign exchange liquidity and stronger external buffers. CBN data cited by AbokiFX showed Nigeria's external reserves at $52.66 billion as of August 19, 2026. A healthier reserve position gives policymakers more room to respond when volatility spikes and can help keep the gap between official and unofficial rates contained over time.
Nigeria has been navigating a period of exchange rate liberalisation since June 2023, when the central bank unified the country's multiple exchange rates and allowed the naira to trade more freely. That policy shift, combined with subsequent reforms, has made the official market the primary reference point for the currency, even as parallel market activity continues to provide a real-time read on demand pressure.
Why This Matters
The relatively narrow premium between Nigeria's official and parallel exchange rates is a key signal of market confidence in the naira. Sustained stability would support planning for businesses, improve transparency for foreign investors, and reduce the incentive for speculative behaviour in the currency market.