Naira Appreciates To N1,610/$1 In Parallel Market

The Nigerian Naira appreciated against the U.S. dollar in the parallel market on Friday, closing at N1,610 per dollar, representing a N20 gain from the previous day. Currency traders confirmed the development, noting increased dollar supply in the market.

Euro and Pound Also Decline Against Naira

The Naira also strengthened against the euro and the British pound. Market data showed that the euro closed at N1,655 per euro, reflecting a 0.91% appreciation of the Naira compared to Thursday’s rate.

Similarly, the British pound traded at N2,000 per pound, down from N2,010 per pound on Thursday, showing a 0.50% decline in value.

A  currency dealer in Lagos, Emeka Eze, explained, “The Naira has gained against major foreign currencies today. We are seeing some stability in the market. But the question on everyone’s lips is, can this be sustained?  or is it just the usual flunctuation?”

CBN Official Rates Differ from Parallel Market

While the Naira appreciated in the parallel market, the Central Bank of Nigeria (CBN) reported a different exchange rate.

On Thursday, the CBN’s official rate stood at N1,493 per dollar. However, by Friday, the CBN rates showed a slight adjustment, with the buying rate at N1,507.40 per dollar and the selling rate at N1,508.40 per dollar.

An X user (formerly Twitter), @Olumide_Johnson, commented, “The gap between the parallel market and the official market remains wide. The CBN needs to ensure liquidity to stabilize the exchange rate further. This is affecting every area of the economy. So much of promises. Things needs to be done”

Outlook for the Naira

Experts predict that the Naira could continue gaining if dollar inflows remain steady. A financial expert, Amina Yusuf, stated, “The recent appreciation suggests that more foreign exchange is entering the system. If this continues, we may see more stability in the coming weeks.”