The naira appreciated by three per cent against the dollar in the parallel market over the past week, closing at N1,570/$1 yesterday, gaining N50 within five days. The nation’s currency however experienced a marginal decline on the official Nigerian Foreign Exchange Market (NFEM) market closing at N1,502.5/$1.
The currency opened the week at N1,620/$1 in the parallel market on Monday before strengthening to N1,610/$1 on Tuesday as dollar supply improved. By Wednesday, it appreciated further to N1,605/$1, maintaining its upward momentum at N1,595/$1 on Thursday.
Yesterday, it closed at N1,570/$1, marking its strongest level in a week. Meanwhile, the official market rate remained relatively stable, closing at N1,499/$1 on Monday and gradually adjusting to N1,502/$1 on Thursday, with yesterday’s marginally declining to N1,5052.5. Market analysts attributed the naira’s recent appreciation to a combination of factors, including increased foreign exchange inflows and policy measures aimed at stabilizing the currency.
The successful issuance of Nigeria’s Eurobond and the domestic dollar-denominated federal government bond has provided much-needed liquidity, easing pressure on the exchange rate.
