The Nigerian naira extended its recent gains against the American dollar, closing at an official exchange rate of N1278.58 to $1 on Tuesday, marking its strongest performance since January 26, 2024.
The latest figure from the Nigerian Autonomous Foreign Exchange Fixing (NAFEX) represents a significant improvement in the naira’s position against the dollar, breaking below the N1,300 threshold for the first time in months.
This notable achievement comes after a period of sustained depreciation for the naira, which saw it climb from N891.9/$1 to N1,348.62/$1 on January 27, 2024. Since then, the official exchange rate had consistently remained above N1,300/$1, with the naira hitting a low of N1,615/$1 on March 13, 2024.
Following the Easter holiday break, trading in the foreign exchange (FX) market resumed with a significant appreciation of the naira, recording rates as low as N1,238.3 against the US dollar.
Bureau De Change (BDC) operators also reported favorable rates, with buying rates at N1,220 per dollar and selling rates at N1,265 per dollar for both cash and transfer transactions.
In the parallel or black market, the naira witnessed further appreciation, reaching N1,225 per dollar, marking a notable 1.99 percent increase from the previous week’s close of N1,280.
This positive trajectory in the naira’s value is largely attributed to the recent efforts by the Central Bank of Nigeria (CBN) to clear all verified foreign exchange backlogs. The CBN’s initiative includes the processing of a final tranche of $1.5 billion
