The naira recorded a modest appreciation on Wednesday, strengthening to N1,615 per dollar in the parallel market, up from N1,620 per dollar the previous day. This positive movement reflects a slight easing in the pressure on the local currency amid ongoing efforts by the Central Bank of Nigeria (CBN) to stabilize the forex market.
In the Nigerian Foreign Exchange Market (NFEM), the naira also gained ground, appreciating to N1,583 per dollar from N1,588.5 recorded on Tuesday. This represents a N5.5 improvement in value, according to official data published by the CBN. The trend signals a cautious return of confidence to the forex market, driven by improved dollar liquidity and renewed interventions by monetary authorities.
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Despite the gains, the gap between the official and parallel market rates continues to widen. The margin grew slightly to N32 per dollar on Wednesday from N31.5 per dollar the previous day. This divergence remains a concern for market watchers, as it highlights ongoing inefficiencies in the nation’s foreign exchange system.
The naira’s appreciation comes amid increased scrutiny of Nigeria’s monetary policies and exchange rate management, with investors closely monitoring any signals of long-term currency stability. Analysts say that sustained improvements in forex inflows, higher oil earnings, and disciplined fiscal measures will be crucial to maintaining the naira’s momentum and narrowing the exchange rate disparity.
While this week’s naira rebound offers a glimmer of hope, experts warn that the currency remains vulnerable to external shocks and demand-supply imbalances, making continuous reforms and transparent forex practices essential for lasting stability.
