The naira gained strength against the US dollar, appreciating to N1,627 in the parallel market and N1,493 in the official window. Traders attribute the recovery to low dollar demand and CBN interventions. Analysts believe continued stability measures could sustain the naira’s upward trend.
The Nigerian naira experienced a slight rebound against the US dollar, appreciating to N1,627 in the parallel market on Thursday. This marks a 1.39% improvement from its previous exchange rate of N1,650 per dollar. The official exchange rate also strengthened, reaching N1,493 per dollar from N1,533 earlier in the week.
Foreign exchange traders in Lagos, commonly known as Bureau de Change (BDC) operators, attributed the naira’s recovery to reduced demand for the dollar and sustained interventions by the Central Bank of Nigeria (CBN). According to traders, the dollar was bought at N1,610 and sold at N1,627, reflecting a N17 margin.
The official foreign exchange market followed a similar trend, with the naira appreciating steadily throughout the week. It closed at N1,520 per dollar on Tuesday, improved to N1,506 on Wednesday, and strengthened further to N1,493 by Thursday.
The CBN’s continuous efforts to stabilize the forex market, including steady dollar sales through banks, have contributed to the naira’s recent gains. Additionally, the central bank recently implemented a foreign exchange code aimed at improving transparency and efficiency in the financial sector.
Market analysts believe that if demand for the dollar remains low and regulatory interventions persist, the naira could maintain its upward trajectory in the coming weeks.
