The naira traded around ₦1,407 to the dollar in the parallel market on Monday, July 28, 2026, as currency dealers and businesses continued to monitor dollar liquidity and demand pressures across both official and informal channels.
The rate reflects a relatively stable but tight trading environment, with the gap between the official and black market remaining significantly narrower than in previous years.
Parallel Market Rate On July 28
According to market trackers, the black market rate hovered around ₦1,407/$ on July 28.This follows recent trading where rates moved between ₦1,400 and ₦1,420.
For context: On July 27, the average sell rate was ₦1,412.50 and buy rate was ₦1,403- On July 23, dealers quoted about ₦1,405 for buying and ₦1,410 for selling.
On July 21, the selling rate was around ₦1,425 and buying around ₦1,410
Traders note that rates vary slightly by location, volume, and dealer, with Lagos Island, Lekki and Abuja typically quoting a bit higher than Lagos Mainland.
Official Market Remains More Stable
In the Nigerian Foreign Exchange Market, NFEM, the naira has been relatively stable.
Recent CBN data showed: July 23: around ₦1,371.36/$
July 21: volume-weighted average of ₦1,380.18/$
July 14: about ₦1,379.62/$
Reuters data on July 24 also quoted the official rate at 1,368 to the dollar. This puts the spread between official and parallel markets at roughly ₦30-₦40, much tighter than the wide gaps seen before FX reforms.
What’s Driving The Rate
Analysts say the naira’s direction is tied to dollar liquidity and demand from key sectors.
Key factors cited:
Demand pressure: Manufacturers, importers and businesses needing forex for raw materials and equipment continue to push demand. Fuel importers have also been front-loading dollar purchases.
Liquidity monitoring: Market participants are closely watching inflows from crude oil exports, foreign portfolio investments and diaspora remittances.
CBN interventions: The Central Bank’s policies to boost liquidity and improve market efficiency have helped keep the official window attractive.
A financial expert, Olumide Adesina, noted that demand from businesses will continue to influence forex adjustments.
Narrower Gap Seen As Positive Signal
The narrowing spread between official and parallel rates has been viewed as a sign of improving price discovery and greater confidence in the official market.
On July 14, the premium was roughly ₦30. By July 15, the gap had narrowed to about ₦30 per dollar as the parallel rate strengthened to ₦1,412.
However, analysts caution that any significant drop in FX inflows or spike in demand could still put pressure on the naira in the coming weeks.
Outlook For The Naira
Reuters traders expect the naira to face mild weakening pressure in the short term, largely due to foreign-currency buying from fuel importers. One trader said downside risks are skewed toward depreciation as importers build inventories.
The CBN has maintained a cautious stance as it seeks to sustain exchange rate stability and contain inflationary pressures. Market watchers are also monitoring outcomes of the Monetary Policy Committee meetings for further signals.
For now, the ₦1,407 parallel market rate shows the naira is holding within a familiar range. With liquidity under close watch, businesses and individuals relying on the black market will be tracking both CBN interventions and dollar inflows to see if stability holds into August.
