The naira posted a modest gain against the US dollar in Nigeria’s parallel foreign exchange market on Friday, July 24, 2026, reversing some of the pressure seen in recent trading sessions.
Currency dealers attributed the improvement to a more balanced flow of dollar supply and demand across major Bureau De Change (BDC) centres, although demand for foreign currency remained firm among businesses and individuals with overseas financial commitments.
Latest Dollar-to-Naira Black Market Exchange Rate
According to information gathered from Bureau De Change operators, the current exchange rates in the parallel market are as follows:
| Currency | Buying Rate | Selling Rate |
|---|---|---|
| US Dollar (USD) | ₦1,400 | ₦1,410 |
The buying rate represents the amount BDC operators pay customers selling US dollars, while the selling rate reflects the cost of purchasing one dollar in the black market.
Naira Improves From Previous Session
Friday’s rates indicate a slight recovery for the local currency compared with the previous trading day, when the dollar exchanged at ₦1,405 for buying and ₦1,415 for selling.
Although the movement was relatively small, traders described it as a sign that pressure on the parallel market had eased slightly after recent gains by the US currency.
Demand for Dollars Remains Strong
Despite the naira’s marginal appreciation, market participants said demand for the dollar continues to be supported by several groups.
Importers seeking to pay overseas suppliers, Nigerians travelling abroad, students funding tuition and living expenses in foreign countries, and businesses meeting international obligations remain among the largest buyers of US dollars in the informal market.
As a result, dealers expect demand for foreign exchange to remain elevated even as short-term market conditions fluctuate.
Parallel Market Rates Continue to Vary
Foreign exchange dealers noted that black market prices are determined entirely by market forces rather than fixed pricing.
Rates may therefore differ slightly depending on the city, the amount being exchanged, and individual Bureau De Change operators.
Traders regularly adjust prices in response to available dollar liquidity and customer demand.
Why the Exchange Rate Keeps Changing
Analysts say several economic factors continue to influence the value of the naira against the dollar in both the official and parallel markets.
Among the key drivers are:
- Demand for foreign exchange from importers, manufacturers and international travellers.
- The availability of US dollars in Nigeria’s official foreign exchange market.
- Crude oil export earnings and the country’s external reserves.
- Diaspora remittances and foreign investment inflows.
- Monetary policy decisions and ongoing foreign exchange reforms.
- Inflation trends, investor confidence and broader economic conditions.
These factors collectively determine how the naira performs against the dollar on a daily basis.
Difference Between Official and Black Market Rates
The official foreign exchange market operates under the supervision of the Central Bank of Nigeria (CBN), which continues to implement reforms aimed at improving liquidity, enhancing transparency and strengthening confidence in the country’s foreign exchange system.
Because the official market and the parallel market function under different pricing structures and levels of dollar availability, exchange rates often differ.
Individuals and businesses are therefore advised to compare available rates before carrying out foreign exchange transactions.
Outlook for the Naira
Market watchers believe the direction of the naira in the coming weeks will largely depend on foreign exchange inflows, oil revenue, the level of external reserves, diaspora remittances, investor sentiment and future monetary policy decisions.
Analysts add that stronger dollar liquidity in the official market could provide additional support for the naira while helping narrow the gap between official and parallel market exchange rates.
