The Nigerian naira appreciated slightly against the US dollar at the official foreign exchange market to close the week at N1,626.00/$1 on Friday.
This represents a gain compared to the previous day’s rate of N1,630.50/$1, based on data published by the Central Bank of Nigeria (CBN).
This marks a relatively positive end to a volatile trading week that saw the local currency swing between gains and losses.
During the week, the naira opened on Monday at N1,629.00/$1, appreciated slightly to N1,615.00/$1 on Tuesday, but weakened to N1,644.00/$1 by Wednesday. It then recovered to N1,630.50/$1 on Thursday before closing the week stronger at N1,626.00/$1 on Friday.
Despite mid-week depreciation, the naira managed to recover part of its losses, indicating slight but positive investor sentiment in the official window.
Parallel Market Movement
In the parallel (black) market, the naira also witnessed mild fluctuations but remained largely stable throughout the week. It closed at N1,624.35/$1 on Friday, a marginal depreciation from N1,621/$1 recorded the previous day.
In the parallel market, the naira began the week on Tuesday trading at N1,585/$1, appreciated slightly to N1,580/$1 on Wednesday, but weakened to N1,621/$1 on Thursday, and further depreciated to N1,624.35/$1 by Friday.
Market watchers attribute the divergence between the official and parallel market rates to continued demand pressure, FX illiquidity, and speculative trading behavior.
Cross-Currency Performance
At the close of trading on Friday, the naira exchanged at N1,591.85/$1, according to the Central Bank of Nigeria (CBN). Against other major currencies, the naira traded at N2,090.57/£1 and N1,815.82/€1.
The Central Bank of Nigeria continues its intervention policies to stabilize the foreign exchange market, including weekly sales to Bureau De Change operators and ongoing efforts to boost FX supply from non-oil sources.
Experts’ take
Alhaji Aminu Gwadabe, President of the Association of Bureau De Change Operators of Nigeria (ABCON), has attributed the ongoing volatility in the forex market to a mix of local and global uncertainties.
On his part, Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), also linked the naira’s recent struggles to global developments and speculative pressures.
Other analysts suggest the naira may continue to trade within a tight range in the coming week, depending on the level of FX liquidity provided by the CBN and foreign inflows into the Nigerian economy. However, they noted, sustained efforts to unify rates and curb speculation are essential to achieving long-term currency stability.
