Keep up with the latest news and be part of our weekly giveaways and airtime sharing; follow our WhatsApp channel for more updates. Click to Follow us

The Naira continued its upward trend yesterday, rising to its highest level in seven months in the parallel market, where it appreciated to N1,500 per dollar from N1,530 per dollar last weekend.

According to data published by the Central Bank of Nigeria (CBN), the indicative exchange rate for the Naira rose to N1,504 per dollar from N1,502.5 per dollar last weekend, indicating a N1.5 depreciation for the Naira.

However, in the parallel market, the Naira appreciated to N1,500 per dollar, making it the first time in a long while that the parallel market exchange rate was lower than the official market exchange rate.

Analysts at Cardinalstone Research confirmed this development in the company’s forex market review yesterday, saying: “The FMDQ FX rate depreciated by 0.17 per cent to N1,503.63 per dollar, while the parallel market rate appreciated by 0.67 per cent to settle at N1,500.00 per dollar.”

Currency traders attributed the continuous appreciation of the Naira to improved dollar supply amidst high demand. Mr. Yinusa Sadiq, a currency dealer, told Vanguard: “The Naira has been appreciating since last week following increased dollar supply even when customer demand remains high.”

“You now have easy access to dollars from the banks and Bureau de Change. As people are selling and they also are buying. The dollar was traded today closing at N1510 to N1,500. I bought a dollar at N1,490 today.”

Mr. Rasaq Bello, a currency trader, projected that the Naira will appreciate further and remain stable between N1,490 and N1,500 per dollar following the continuous rise in dollar supply. “If there is continuous increase in dollar supply, I see the foreign exchange rate stabilizing between N1,490 per dollar and N1,500 per dollar this week.”

Analysts at CowryAsset Management Limited also expect the Naira to trade at a stable pace against the dollar this week. “This week, the Naira is expected to trade within a relatively stable range, provided there are no significant market distortions.”

“Market dynamics will continue to shape the supply and demand for the dollar, influencing the local currency’s performance across various exchange segments,” they added.

Please don’t forget to “Allow the notification” so you will be the first to get our gist when we publish it. 
Drop your comment in the section below, and don’t forget to share the post.