The naira strengthened against the US dollar on Thursday, August 20, 2026, as improved dollar liquidity continued to support the local currency in the foreign exchange market.
The latest market figures showed that the naira had maintained its recent recovery in the official market, although the dollar remained significantly more expensive in the parallel market.
Official dollar to naira rate
The US dollar was quoted at approximately ₦1,344.45 at the Nigerian Foreign Exchange Market (NFEM) on Thursday, based on the latest available rate.
A live currency-rate source also recorded the USD/NGN exchange rate at about ₦1,344.45 as of 5:18 a.m. UTC.
The latest figure comes after the naira recorded further gains in the official market in recent trading sessions.
Data from the Central Bank of Nigeria showed that the NFEM rate stood at ₦1,343.32 on August 18, while the naira had closed at around ₦1,350 per dollar on August 17.
The movement has kept the local currency around its strongest levels in recent months.
Parallel market dollar rate
The parallel market continued to quote the dollar at a higher rate on Thursday.
According to Aboki Forex, the US dollar was selling for about ₦1,404 in the parallel market on August 20.
This means the difference between the reported parallel-market selling rate and the latest NFEM indication was approximately ₦60 per dollar.
Dollar to naira rates at a glance
| Market | Dollar rate |
|---|---|
| Official NFEM | About ₦1,344.45/$ |
| Parallel market | About ₦1,404/$ |
| Difference | About ₦60/$ |
Rates are based on the latest available figures and may change as trading continues.
Difference between official and parallel rates
The reported parallel-market rate remained above the official NFEM rate, showing that a gap still exists between the two segments of Nigeria’s foreign exchange market.
At the reported rates, the parallel-market dollar was about ₦60 more expensive than the official market rate.
This difference means Nigerians who obtain dollars outside the formal market may still pay considerably more than those accessing foreign exchange through official channels.
What is supporting the naira?
The naira’s recent improvement has been linked to better dollar supply and stronger liquidity in the foreign exchange market.
AbokiFX reported on August 19 that the naira had reached a five-month high in the official market as increased dollar liquidity helped strengthen the local currency.
Improved foreign exchange availability can reduce pressure on the naira when demand for dollars remains under control.
The recent movement also suggests that conditions in the official market have become more supportive of the local currency compared with previous periods of tighter dollar supply.
Factors that could determine the next exchange rate
The naira’s direction in the coming days will depend on several factors.
These include the level of dollar supply, demand from importers and businesses, foreign investment inflows, remittances and earnings from crude oil exports.
Foreign exchange policies and interventions by the Central Bank of Nigeria could also influence the market.
Any major change in demand for dollars or availability of foreign currency could cause the naira-dollar rate to move in either direction.
Why exchange rates differ
The NFEM rate is determined from transactions in Nigeria’s formal foreign exchange market using a volume-weighted average.
The parallel market operates differently, with rates often varying between dealers and locations.
The amount of dollars being bought or sold can also affect the rate offered by a particular dealer.
As a result, the rate available to an individual or business may not always be exactly the same as the published market indication.
What Nigerians should know
Exchange rates can change during the trading day as demand and supply conditions shift.
Nigerians who need dollars for international travel, school fees, imports, remittances or other foreign-currency obligations should confirm the current rate before completing a transaction.
Rates offered by banks, Bureau De Change operators and other dealers may also differ depending on the transaction and prevailing market conditions.
Dollar to Naira Rate Summary — August 20, 2026
- Official NFEM rate: About ₦1,344.45/$
- Parallel market selling rate: About ₦1,404/$
- Difference: About ₦60/$
- Official market movement: Naira strengthened amid improved dollar liquidity
Note: Exchange rates can change during the day and may differ across banks, Bureau De Change operators and other foreign exchange dealers.
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