Naira strengthens against Dollar in parallel, official markets

The Nigerian naira recorded its first appreciation against the US dollar in both the parallel and official foreign exchange markets on Monday, marking a positive shift after a week of continuous depreciation.

At the parallel market, also known as the black market, the naira traded at N1,570 per dollar, strengthening from N1,580 recorded on Friday.

This represents a gain of N10 within a single trading day. A Bureau de Change operator at Wuse Zone 4, Abuja, Abubakar Alhasan, confirmed the new exchange rate.

Similarly, in the official foreign exchange market, the naira appreciated slightly, closing at N1,531.19 per dollar on Monday, up from N1,536.89 recorded at the close of trading last week.

This reflects a gain of N5.7, according to official FX data from the Central Bank of Nigeria (CBN).

Last week, the naira faced depreciation in the official market but managed to show resilience in the black market, leading to mixed trading sentiments.

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The currency had last recorded gains against the dollar on Tuesday and Wednesday of the previous week before slipping into a downward trend.

The latest appreciation comes as a relief to market watchers and economic analysts, who have been monitoring fluctuations in Nigeria’s foreign exchange market closely.

It also raises hopes for further stabilization in the value of the naira amid ongoing efforts by the CBN to address liquidity challenges and forex volatility.

Analysts suggest that improved dollar inflows and measures to curb speculative trading could be contributing factors to the naira’s appreciation. However, the sustainability of this positive movement remains uncertain, as external factors such as global oil prices and capital inflows continue to influence Nigeria’s foreign exchange dynamics.

Market participants will be watching closely in the coming days to see whether this trend continues or if the naira faces renewed pressure against the dollar.