Victor EzejaThe Nigerian naira saw a rebound on Friday, 20 June at the official market, ending the week on a positive note.
Central Bank of Nigeria (CBN) data showed that the naira exchanged for N1,547.36 at the Nigeria Foreign Exchange Market (NFEM) on Friday.
Join our WhatsApp ChannelThe local currency gained N2.05 against the dollar at the official market when compared to Thursday’s N1,549.41 per dollar. This comes after three days of consecutive depreciation at the official market.
The naira had opened the week on a positive note on Monday, 16 June, when it appreciated to N1,544.62 from N1,549.35 recorded on Friday of the previous week (13 June). The local currency slipped to N1,545.26 per dollar on Tuesday, 17 June depreciated further to N1,549.20 per dollar on Wednesday, 18 June.
The CBN data showed that the naira traded between a high of N1,552 and a low of N1,545 per dollar on Friday.
At the parallel market, the naira closed flat at N1,600 per dollar on Friday.
A week-on-week analysis of the foreign exchange markets showed that the naira rose by N2.73 at the official market and N6 at the parallel or black market window.
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The naira has remained relatively stable in recent times. At the official market, it remained below the N1,600/$ mark within the week under review.
Commenting on Naira’s positive trend, analysts at Commercio Partners said the recent bullishness of the local currency reflects tighter monetary conditions and stronger oil receipts amid a global crude rally due to geopolitical tension (especially the Israel-Iran crisis).
“The Central Bank of Nigeria’s continued liquidity tightening appears to be taking root, helping stabilize expectations and dampen speculative demand for FX. Simultaneously, elevated oil prices—spurred by geopolitical unrest in the Middle East—are improving Nigeria’s oil export revenues and bolstering FX reserves, which have supported the naira’s resilience in recent sessions,” it stated.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
