By Niyi jacobs
The Nigerian naira appreciated against the U.S. dollar in the parallel market on Friday, closing at N1,610/$1, up from N1,630/$1 recorded on Thursday, marking a N20 gain in one day.
Similarly, the naira strengthened against the British pound, which traded at N2,000/£1, down from N2,010/£1, while the euro closed at N1,655/€1, reflecting a 0.91% appreciation.
Meanwhile, the official exchange rate reported by the Central Bank of Nigeria (CBN) stood at N1,493/$1 as of Thursday, with Friday’s rates indicating N1,507.40/$1 (buying rate) and N1,508.40/$1 (selling rate).
The naira’s gain in the parallel market suggests an increased supply of dollars or reduced speculative activity. However, analysts warn that external factors like oil prices, remittance inflows, and investor confidence will continue to influence exchange rate movements.
The CBN has intensified efforts to stabilize the forex market, implementing stricter regulations on Bureau De Change operators and enforcing the newly introduced Nigeria Foreign Exchange (FX) Code. CBN Governor Olayemi Cardoso has reiterated that violations of the FX Code will attract penalties under existing financial regulations.
Despite these interventions, Nigeria’s foreign exchange reserves fell by $832.62 million between January 6 and January 21, reflecting ongoing market pressures. The CBN remains focused on sustaining stability through policy adjustments and enhanced liquidity measures.
