FX Spread Declines over Naira’s Positive Performance
FX market: The spread or gap in exchange rates declined further as the naira continued to swing both sides in the official and informal currency markets. On Tuesday, the naira lost N3.35 on each US dollar traded in the official window—the second decline in value this week.
This happened after a huge gain over the week and the last two months of favourable exchange rate movement. The FX spot rate on FMDQ was quoted at ₦1,498.95 per greenback in the official market following moderate demand pressures.
Analysts said it is more likely to see the Central Bank intervention this week, having slowed down its FX operation but allowed banks to sell $25,000 US dollars to boost parallel market supply.
The strong liquidity in the informal currency market has aided exchange rate recovery and supported the naira’s stability in 2025. A slew of investment firms said in their separate market updates that the exchange rate in the parallel market appreciated to N1600 per US dollar.
This left the spread between the official and parallel market rates at 6.74% on Tuesday from 6.98%. In absolute term, the naira exchange rates gap had declined to N101 per greenback. To some analysts, the spread remains heavy and could spurred speculative activities in the foreign exchange market.
On the other, narrowed FX gap is considered as step towards unification of exchange rates in Nigeria. #FX Spread Declines over Naira’s Positive Performance 2025 Budget: Osun Govt Targets N109bn IGR
