The Nigerian naira made a slight gain against the US dollar in the official foreign exchange market, closing the week at N1,626.00/$1 on Friday.
This marks an improvement compared to Thursday’s rate of N1,630.50/$1, according to data from the Central Bank of Nigeria (CBN).
The week ended on a relatively positive note after a period of volatility, with the local currency experiencing fluctuations between gains and losses.
At the start of the week, the naira opened at N1,629.00/$1 on Monday, strengthened slightly to N1,615.00/$1 on Tuesday, but weakened to N1,644.00/$1 by Wednesday. It recovered to N1,630.50/$1 on Thursday before closing stronger at N1,626.00/$1 on Friday.
Despite some mid-week depreciation, the naira managed to recover some of its losses, reflecting a slight but positive sentiment among investors in the official market.
Parallel Market Movement
In the parallel (black) market, the naira saw mild fluctuations but remained largely stable throughout the week. It closed at N1,624.35/$1 on Friday, a slight drop from N1,621/$1 on Thursday.
The naira opened the week on Tuesday at N1,585/$1, appreciated slightly to N1,580/$1 on Wednesday, but weakened to N1,621/$1 on Thursday, before further depreciating to N1,624.35/$1 on Friday.
The divergence between the official and parallel market rates is attributed to ongoing demand pressures, FX illiquidity, and speculative trading behavior.
Cross-Currency Performance
At the close of trading on Friday, the naira was valued at N1,591.85/$1 according to the CBN. Against other major currencies, the naira traded at N2,090.57/£1 and N1,815.82/€1.
The CBN continues to implement intervention measures to stabilize the foreign exchange market, including weekly sales to Bureau De Change operators and efforts to increase FX supply from non-oil sources.
Experts’ Insights
Alhaji Aminu Gwadabe, President of the Association of Bureau De Change Operators of Nigeria (ABCON), attributes the ongoing forex volatility to a mix of local and global uncertainties.
Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), links the naira’s recent struggles to both global factors and speculative pressures.
Other analysts suggest the naira may continue to trade within a narrow 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 emphasize that sustained efforts to unify rates and curb speculation are critical for achieving long-term currency stability.
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