The Naira experienced a significant boost in the foreign exchange market yesterday, strengthening to N1,595 per dollar in the parallel market—an appreciation from N1,610 per dollar recorded on Monday. This marks a notable recovery as the local currency continues its upward momentum.
Compared to last Tuesday’s exchange rate of N1,640 per dollar, the Naira has now gained N45 week-on-week (WoW) in the parallel market, reflecting increased confidence in the currency.
In the official Nigerian Foreign Exchange Market (NFEM), the Naira remained stable at N1,499 per dollar yesterday. However, this represents a N27.3 WoW appreciation from N1,526.3 per dollar recorded the previous Tuesday.
Read Also: FOREX code, Cardoso’s approach to stabilizing the naira
As a result of the ongoing appreciation, the gap between the parallel market and the official rate has narrowed to N96 per dollar, down from N113.7 per dollar just a week ago.
The Naira’s upward trend has been consistent since Thursday, January 23rd, when it strengthened to N1,665 per dollar in the parallel market, rising from N1,670 per dollar recorded on Wednesday, January 22nd. Similarly, the official market saw an improvement, with the Naira appreciating to N1,548 per dollar on January 23rd, up from N1,553 per dollar on January 22nd.
Since then, the local currency has gained N75 in the parallel market and N54 in the official market, marking one of its most impressive recoveries in recent weeks.
Currency traders attribute this steady appreciation to weaker dollar demand, influenced largely by the Chinese New Year holiday, which has slowed global currency movements.
With market forces playing in favour of the Naira, many are watching to see if this positive trend will continue, offering a much-needed break from the volatility that has defined Nigeria’s foreign exchange market in recent months.
