Naira Gains Strength In Parallel Market, Trades at N1,605/$1

The Naira recorded a notable gain in the parallel market on Monday, appreciating by N5 against the US dollar. According to sources from Prime Business Africa, the local currency traded at N1,605 per dollar (selling) and N1,602 per dollar (buying), reflecting an improvement from Friday’s rate of N1,610 per dollar. A forex trader in Lagos, Yusuf Adewale, confirmed the rise in the Naira’s value.

“The Naira strengthened today. We saw a slight increase in supply from sellers who expect further gains. Buyers are also holding back, waiting to see if the trend continues,” he said. The recent improvement in the Naira’s value follows a sharp drop last Thursday when it traded at N1,630 per dollar. The recovery offers some relief to Nigerians facing high foreign exchange costs.

Naira Performance in the Official Market

While the parallel market rate showed an upward trend, the Central Bank of Nigeria (CBN) data from Saturday indicated that the Naira traded at N1,477.2 per dollar (buying) and N1,478.2 per dollar (selling) in the official market. This gap between the official and parallel market rates continues to raise concerns among analysts. A financial expert, Chidi Okafor, explained the implications of the widening spread.

“The difference between the official and parallel market rates shows the pressure on the Naira. CBN policies are helping, but more needs to be done to unify the rates,” Okafor said.

Despite this gap, the official market recorded a strong close in January, with the Naira trading at N1,475 per dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM). This marks the best performance since June 2024, when the Naira reached N1,473 per dollar. “The improvement is encouraging,” Okafor added. “If the trend continues, we may see more stability in the exchange rate.”

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Other Currencies Against the Naira

The appreciation of the Naira was also reflected in the rates of other major foreign currencies in the parallel market.

• The British Pound (GBP) traded at N2,010 per pound, marking a 1.00% increase.
• The Euro remained stable at N1,670 per Euro, showing no significant movement.
• Another trading session saw the Pound exchange at N2,000 per pound, up by 0.50%, while the Euro fluctuated to N1,655 per Euro, up by 0.91%.

A currency exchange dealer, Musa Lawal, spoke about the slight changes. “The market is unpredictable, but the Naira’s recent strength is a good sign. Many are hoping for more stability,” he said.

CBN Reforms and Future Outlook

Experts link the Naira’s latest recovery to ongoing reforms by the Central Bank of Nigeria. The President of the Association of Bureaux De Change Operators of Nigeria (ABCON), Aminu Gwadabe, emphasized the role of these policies in boosting the Naira. “The CBN’s policies are yielding results,” Gwadabe said. “If properly implemented, the reforms will help strengthen the Naira further. We urge the CBN to grant us self-regulatory status to enhance transparency in the market.”

He also suggested adopting tech-driven solutions to improve foreign exchange operations. “Technology will make the system more efficient. We need digital platforms to ensure smooth transactions and prevent manipulation,” Gwadabe added.

With continued policy adjustments and market interventions, stakeholders remain hopeful that the Naira will maintain its upward trend in the coming months.