January 31, 2025
The Nigerian naira on Friday, appreciated against the U.S. dollar in the parallel market, closing at N1,610 to a dollar, as against N1,630 to a dollar recorded the previous day, signifying a N20 increase within a day.
The British pound also weakened slightly against the naira, trading at N2,000/£1 on Friday, as against N2,010/£1 the previous day indicating a 0.50% decline.
The euro was not left out in the drop, closing at N1,655 per €1, marking naira appreciation by 0.91%.
These latest movements in the parallel market comes as the Central Bank of Nigeria (CBN) reported an official exchange rate of N1,493 per $1 on Thursday.
CBN’s rates, on Friday, indicated that the naira was bought at N1,507.40/$1 and sold at N1,508.40/$1
READ MORE; Naira dropped by 0.3% at official market
Despite the naira’s modest gain in the parallel market shows a positive sign, analysts warned that fluctuations was likely due to external factors such as oil prices, remittance inflows, and investor sentiment toward Nigeria’s economy.
The foreign exchange market continues to experience volatility, and further interventions from the apex bank may be necessary to ensure sustained stability.
The CBN has been executing several forex interventions and policy measures to shore up and stabilizing the naira, including tightening regulations on Bureau De Change operators and increasing dollar liquidity in the official market.
The CBN Governor, Olayemi Cardoso had earlier this week announced that any violation of the newly launched Nigeria Foreign Exchange (FX) Code would attract severe penalties.
He affirmed the Central Bank’s resolve to enforce ethical conduct and transparency in the foreign exchange market.
