The Naira posted significant gains against the US Dollar in both the official and parallel foreign exchange markets on Friday, marking a positive end to the week for Nigeria’s currency.
According to data from the Central Bank of Nigeria (CBN), the naira appreciated to ₦1,535 per dollar at the official exchange market, rising from ₦1,567 on Thursday. This represents a gain of ₦32 within a single day.
On the FMDQ Securities Exchange, the naira traded between ₦1,480 and ₦1,700.76 per dollar by the close of Friday’s trading session. The FX transactions turnover stood at $175.5 million, indicating robust trading activity during the day.
The parallel market also experienced a substantial appreciation of the naira, with the currency trading at ₦1,600 per dollar on Friday, compared to ₦1,715 on Thursday. This translates to a gain of ₦115 in the black market.
Over the week, the naira gained ₦125 against the dollar in the official market, reflecting a broader strengthening trend supported by policy measures from the CBN.
The currency’s improvement follows recent interventions by the CBN aimed at stabilizing the foreign exchange market.
At the end of November 2024, the apex bank introduced fresh measures, including a directive for banks to adopt the Bloomberg BMatch system for FX trading starting December 2, 2024. The system is expected to enhance transparency and efficiency in FX transactions.
Additionally, the CBN raised the minimum FX trading limit to $100,000 from $50,000, signaling efforts to boost liquidity in the market.
These developments have been welcomed by market analysts and traders, who see them as critical steps toward addressing the volatility that has characterized the Nigerian foreign exchange market in recent months.
