The Nigerian naira experienced substantial gains against the U.S. dollar over the past week, closing the week with notable appreciation in both the official and black markets.
According to data provided by the Financial Markets Dealers Quotations (FMDQ), the naira appreciated by ₦19.42 at the official market, strengthening to ₦1,574.20 per dollar on Friday from ₦1,593.62 on Thursday. This marks a significant improvement and highlights a positive trend in the official exchange rate.
The black market also reflected this upward movement. On Friday, the naira closed at ₦1,605 per dollar, a ₦5 improvement from the previous day’s rate of ₦1,610.
Over the week, the naira appreciated by ₦42.88 in the official market, moving from ₦1,617.08 per dollar the previous Friday to ₦1,574.20. This appreciation coincided with an increase in foreign exchange transaction turnover, which surged to $323.11 million on Friday, up from $61.9 million earlier in the week.
The naira’s recent strength followed the Central Bank of Nigeria’s (CBN) decision to implement the Retail Dutch Auction System on Wednesday.
During this auction, the CBN sold $876.26 million to 26 banks at a rate of ₦1,495 per dollar, further supporting the naira’s performance.
