Naira appreciates for third consecutive day in official market

The Nigerian naira continued its upward trajectory in the official foreign exchange market, recording gains for the third consecutive day against the U.S. dollar on Thursday, January 30, 2025.

According to data from the FMDQ Securities Exchange, the naira appreciated to N1,485.95/$1, strengthening from N1,510.72/$1 recorded on Wednesday. This marks a notable gain of N24.77 for the local currency in the regulated forex window.

Despite its positive performance in the official market, the naira depreciated against major foreign currencies in the parallel market.

The local currency weakened by N5 against the dollar, trading at N1,635/$1, compared to the previous rate of N1,630/$1.

Similarly, the naira lost N10 against the British Pound, exchanging at N2,020/£1 as against Wednesday’s rate of N2,010/£1. The euro also saw an appreciation against the naira, with the local currency slipping from ₦1,670/€1 to ₦1,680/€1.

In contrast to its fluctuations against the dollar, pound, and euro, the naira maintained stability against the Canadian dollar. It continued to trade at N1,280/CA$1, reflecting relative steadiness in its performance against the Canadian currency.

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The recent appreciation in the official forex market signals growing investor confidence and potential interventions by the Central Bank of Nigeria (CBN) to stabilize the currency.

However, the divergence in the parallel market suggests ongoing forex liquidity constraints and market speculation.

As Nigeria continues to navigate economic reforms, stakeholders remain keen on government policies and global economic factors that could further impact the exchange rate dynamics in the coming weeks.