The naira appreciated in the official market on Monday, closing at N1,600/$1, a 0.37% improvement from Friday’s rate of N1,606/$1.
This is a positive start to the week following a turbulent period last week, during which the naira experienced consecutive daily depreciations. However, the trend shifted on Friday when it appreciated slightly from N1,610/$1 to N1,606/$1.
According to data from the Nigerian Foreign Exchange Market (NFEM), the naira traded within a range of N1,595/$1 to N1,605.05/$1 before settling at N1,600.44/$1 by the close of trading.
In contrast, the naira weakened in the parallel market, falling to N1,630/$1 from Friday’s N1,625/$1. It also depreciated against the British pound by 0.23%, trading at N2,150/£1 compared to N2,145/£1 previously. Against the euro, the naira held steady at N1,810/€1.
The naira’s mixed performance highlights the divergent dynamics across foreign exchange channels, appreciating in the official market while facing pressure in the parallel market.
Analysts suggest the appreciation in the official window may indicate early signs that ongoing reforms and the Central Bank of Nigeria’s (CBN) sustained interventions are beginning to yield results, potentially paving the way for greater exchange rate stability.
