The Nigerian currency, the naira, rallied against the dollar in the parallel market on Thursday, June 26, 2925, narrowing the exchange rate gap between the black market and the official window.

According to data from FX trading platforms and street traders, the naira strengthened to N1,575 per dollar in the black market, representing an N35 gain, or 2.2% relative to the N1,610 recorded at the beginning of June.

Naira gains in all FX windows

It also shows a 0.6% gain from N1,585 traded on Tuesday, June 24, 2025.

Figures from the Nigerian Foreign Exchange Market (NFEM) show that the naira appreciated by N32.32 against the dollar since the beginning of June.

As of Wednesday, June 25, 2025, the NFEM rate stood at N1,549.26 per dollar, relative to N1,581.58 traded on June 2, 2025, showing a 2.08% gain.

Last week, the local currency appreciated by N1.99 or 0.13% weekly against the dollar at the official window, closing at N1,547.36 per dollar in the week under review.

Dollar inflows rise in FX market

A previous report by Legit.ng said that the gain was driven by inflows from foreign portfolio investors (FPIs) and contributions from exporters and non-bank corporates.

The inflows helped push the local currency to a weekly high of N1,544.63 per dollar.

However, the naira weakened in the parallel market, losing 0.31% to close at N1,605 to a dollar, widening the gap between the official and parallel windows.

Data from the Central Bank of Nigeria (CBN) shows that total forex inflows into the market during the week were $1.03 billion.

FPIs accounted for the largest share of the inflows, contributing 67.29% of the total inflows for the fifth week in a row, showing continued investors’ confidence in Nigeria’s fixed-income market.

CBN sells dollars in forex market

Non-bank corporates followed with 13.36%, with exporters contributing 10.87%, while other sources accounted for 0.17%.

Also, the CBN intervened with $86.6 million in FX supply to ease demand pressures.

BusinessDay reports that despite these inflows, Nigeria’s gross external reserves dropped by $219.56 million or 0.58% per week, closing at $37.71 billion as of last Thursday.

Analysts predict mixed fortunes for naira

Analysts at Coronation Merchant Bank stated that the naira is may trade within a narrow range, with a slight tendency to appreciate, if FPIs continue, exporters and corporates continue to grow.

However, they stated that persistent demand pressures could limit the strength of any gains.

“Analysts are also closely monitoring the widening spread between the official and parallel market rates, which may point to a disconnect within the foreign exchange market,” they said.