Yesterday, the Naira continued its upward trend, reaching its highest value in seven months in the parallel market. It appreciated to N1,500 per dollar, up from N1,530 per dollar last weekend.
The last time the Naira traded below N1,500 per dollar in the parallel market was on June 21st of last year, when it stood at N1,495 per dollar.
However, the Naira weakened to N1,504 per dollar in the Nigerian Foreign Exchange Market (NFEM). According to data from the Central Bank of Nigeria (CBN), the indicative exchange rate for the Naira rose slightly to N1,504 per dollar from N1,502.5 per dollar last weekend, marking a 1.5 Naira depreciation.
For the first time in a while, the parallel market rate was lower than the official market rate, with the gap between the two narrowing to minus N4 per dollar, compared to N27.5 per dollar last Friday.
Analysts from Cardinalstone Research confirmed the trend, noting that the FMDQ FX rate depreciated by 0.17%, settling at N1,503.63 per dollar, while the parallel market rate appreciated by 0.67% to N1,500 per dollar.
As a result, the Naira has recorded a Year-to-Date (YtD) appreciation of 9.4% in the parallel market and 2.2% in the official market, compared to N1,655 per dollar and N1,538.5 per dollar at the close of last year.
Currency traders attributed the Naira’s ongoing appreciation to an improved dollar supply amidst high demand. Mr. Yinusa Sadiq, a currency dealer, shared with Vanguard that the Naira has been strengthening due to the increased dollar supply, even though customer demand remains high.
“You can now easily access dollars from banks and Bureau de Change outlets, as people are both selling and buying
