The naira appreciated significantly, gaining N59.71 against the dollar to close at N1600.78 on Friday after several days of depreciation. Foreign exchange transactions increased to $350.72 million, while the parallel market rate fell slightly to N1725 per dollar, reflecting ongoing volatility in Nigeria's currency market.
The naira recorded a significant gain against the dollar, ending the week strongly following several days of depreciation. Data from FMDQ indicated that the naira appreciated to N1600.78 per dollar on Friday, compared to N1660.49 on Thursday, marking a gain of N59.71.
This increase coincided with a rise in foreign exchange transactions, which reached $350.72 million on Friday, up from $330.18 million the previous day. Despite the naira experiencing fluctuations throughout the week, the currency recovered after three consecutive days of decline.
On the parallel market, however, the naira weakened slightly, dropping to N1725 per dollar from Thursday’s rate of N1705. This decline reflects the naira's continued volatility, despite ongoing efforts by the Central Bank of Nigeria (CBN) to stabilize the currency.
CBN Governor Olayemi Cardoso recently commented that a weaker naira could benefit the economy, provided there is adequate investment inflow into Nigeria. Nevertheless, the naira's inconsistent performance highlights the challenges in managing the foreign exchange market.
