The Naira on Friday appreciated to N1,510 per dollar in the parallel market, strengthening from N1,513 per dollar recorded on Thursday.
Similarly, in the Nigerian Foreign Exchange Market (NFEM), the Naira appreciated to N1,485 per dollar, compared to N1,490 per dollar the previous day.
Data published by the Central Bank of Nigeria (CBN) showed that the official exchange rate further improved, with the Naira trading at N1,480 per dollar on Friday, up from N1,485 per dollar on Thursday, indicating a N5 gain.
Consequently, the margin between the parallel market and NFEM rates widened to N30 per dollar, compared to N28 per dollar on Thursday.
For the week, the Naira appreciated by N11.49 kobo at the official market and by N10 at the parallel market against the U.S. dollar.
Analysts, however, project stability in the foreign exchange (FX) market in the near term, citing stronger inflows and improved investor confidence.
In its weekly financial market review and outlook, Cowry Asset Management Limited stated:
“Looking ahead, the Naira is expected to stay relatively stable across markets, supported by stronger FX inflows, reserves build-up, and sustained CBN interventions. Higher oil prices should further strengthen external buffers and investor confidence.
“Still, risks from global oil price swings and persistent domestic demand pressures mean sentiment could remain cautious.”
Discussion about this post