The naira, on Monday, showed a small improvement in value against the United States dollar, both in the parallel market and the official foreign exchange market. This follows ongoing efforts by the Central Bank of Nigeria (CBN) to stabilize the local currency amid ongoing demand and supply pressures.
At the close of trading yesterday, the naira traded at N1,600 per dollar in the parallel (black) market, marking a gain from the N1,610 level it held over the weekend. This represents a N10 appreciation, giving currency traders and buyers a sense of short-term relief.
In the official Nigerian Foreign Exchange Market (NFEM), the currency also saw a minor gain, with the rate improving to N1,605 per dollar from N1,606 recorded last Friday, according to official data released by the CBN. This modest increase, while not drastic, signals ongoing market activity and possibly cautious optimism among traders and investors.
The CBN’s report noted that the exchange rate at the NFEM improved by N1, reflecting a continuing trend of slight fluctuations in the market. Though small, movements like this are closely watched, as they indicate the overall direction of currency performance in Nigeria’s complex exchange rate environment.
As a result of these changes, the gap between the official and parallel market rates expanded slightly. The difference widened to N5 per dollar, up from N4 per dollar over the weekend.
