Gladness Gideon
The naira recorded a modest appreciation against the U.S. dollar on Monday, both in the parallel market and the Nigerian Foreign Exchange Market (NFEM), reflecting renewed market confidence and possible improvements in forex liquidity.
At the parallel market, the naira strengthened to ₦1,545 per dollar, gaining ₦5 from ₦1,550 per dollar recorded at the close of trading last weekend.
Similarly, data published by the Central Bank of Nigeria (CBN) showed that the naira appreciated in the official Nigerian Foreign Exchange Market, closing at ₦1,528.65 per dollar, up from ₦1,532 per dollar recorded last Friday. This represents a ₦3.35 gain for the local currency in the official window.
As a result of these gains, the margin between the official and parallel market rates narrowed slightly to ₦16.35 per dollar, compared to ₦18 per dollar last weekend. The reduced spread suggests increasing alignment between both markets, a development often associated with improved market transparency and more effective regulatory oversight.
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Analysts attribute the naira’s recent resilience to a combination of factors, including sustained interventions by the CBN, improved supply of foreign exchange, and cautious optimism among investors.
The market will continue to watch how these dynamics unfold in the coming days, especially amid broader efforts to stabilize Nigeria’s monetary system and attract foreign capital inflows.