The naira made a significant recovery in the parallel market, appreciating by N5 against the US dollar on Monday.
It currently trades at N1,605/$1 (selling) and N1602/$1 (buying) according to Nairametrics sources, a slight improvement from Friday’s rate of N1,610/$1.
This marks a positive shift for the Nigerian currency after a series of fluctuations in recent weeks.
According to Nairametrics sources, the naira was trading at N1,605/$1 (selling) and N1,602/$1 (buying) in the parallel market as of Monday’s close.
This development follows a fall from Thursday’s rate of N1,630/$1, offering some relief to Nigerians dealing with rising foreign exchange costs.
On the official side, the Central Bank of Nigeria (CBN) data showed that the naira was trading at N1,477.2/$1 (buying) and N1,478.2/$1 (selling) on Saturday.
This reflects a clear contrast with the parallel market rate, highlighting the gap between official and unofficial exchange channels.
The naira ends January on a high note
In addition, Nairametrics reported that the naira closed January 2025 at N1,475/$1 at the Nigerian Autonomous Foreign Exchange Market (NAFEM), marking the currency’s best performance since June 2024.
The strongest rate was recorded on June 11, 2024, at N1,473/$1, until the end of January 2025.
The closing rate of N1,475/$1 represents a notable improvement from the previous month’s rate of N1,535/$1, resulting in a N60 gain or a 3.91% appreciation month-on-month.
Other currencies against the Naira
Furthermore, the parallel market has also seen changes in the exchange rates for other major currencies:
- The British Pound (GBP) traded at N2,010.00, reflecting a 1.00% increase.
- The Euro remained stable at N1,670.00, with no change observed.
- Other shifts include the GBP being exchanged for N2,000.00, up by 0.50%, and the Euro’s rate fluctuating to N1,655.00, up by 0.91%.
The positive movements in the naira exchange rate come amid continued efforts by the CBN to stabilize the currency and manage the parallel market volatility. With the new figures, experts will be closely monitoring the continued performance of the naira as Nigeria navigates its economic challenges in the new year.
More insights
The President of the Association of Bureaux De Change Operators of Nigeria, Aminu Gwadabe, over the weekend, urged the CBN to grant the association self-regulatory status to aid forward guidance of its members and adopt the operators’ IT platforms to entrench a tech-driven industry and boost transparency in market operations.
He said this in a statement made available to newsmen on Sunday, where he also hinged the rally of the naira on the reforms by the CBN.
