Naira Appreciates To N1,590/$1 In Black Market

The Naira appreciated to N1,590 per dollar in the black market on Wednesday, breaking the N1,600 mark. This marks a 4.7% gain in one month, as the local currency rose from N1,665 per dollar traded at the beginning of the year.

On Tuesday, the Naira closed flat at an average rate of N1,600 per dollar, slightly weaker than the N1,599.33 recorded on Monday in the parallel market.

Official Market Exchange Rate Holds

At the official foreign exchange (FX) market, the Naira remained steady at N1,499 per dollar, according to data from the Central Bank of Nigeria (CBN). The official FX platform, the Nigerian Foreign Exchange Market (NFEM), continues to reflect stability despite fluctuations in the black market.

READ ALSO: Naira Holds Steady As CBN Extends Dollar Access To BDC Operators

What is Driving the Naira’s Gain?

Currency dealers attributed the appreciation of the Naira to improved dollar supply and reduced demand for the U.S. currency. They also pointed to the CBN’s foreign exchange policies as a significant factor in stabilizing the market.

Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), explained the reasons behind the Naira’s recent performance.

“Notably, the increased capital flows and relative stability in the foreign exchange market, alongside the narrowing of exchange rate disparities across different market segments, has been largely due to the bold tightening measures since the beginning of the year,” Cardoso said.

Outlook for the Naira

Analysts and experts believes the Naira’s performance will depend on continued dollar inflows and CBN’s intervention strategies. Market participants and businessmen are watching closely to see if the local currency can sustain its upward momentum in the coming weeks, months and years.

With ongoing efforts to strengthen the economy and stabilize the exchange rate, the Naira remains a key focus for traders and businesses navigating Nigeria’s foreign exchange market.