Nigeria’s official market saw the Naira close the week at N1,469.97/$1 amidst persistent demand pressure, marking a strengthening trend against the dollar.
Despite the Central Bank of Nigeria’s (CBN) efforts to boost forex supply, the ongoing demand continued to chip away at the Naira’s value.
The local currency edged up by 0.71% at the week’s end, settling at N1,469.97 to a dollar, according to data from NAFEM, the official forex trading platform.
This is a gain of N9.5 or 0.71% from Thursday’s closing rate of N1,479.47. The intraday high hit N1560/$1, with a low of N996/$1, showing a wide N564/$1 spread.
Forex turnover at NAFEM’s close was $253.77 million, down 21% from the previous day. Similarly, the parallel forex market saw the Naira appreciate marginally to N1,485/$1, up 1.01% from the previous day’s N1,500.
The GBP remained stable at £1/N1,890, while the Naira gained 0.95% against the Euro, closing at N1585/EUR1 versus N1600/EUR1 previously.
In the cryptocurrency market, the exchange rate stood at N1,485/$1, hovering near N1500/$1 since January 25.
Market analysts attribute the Naira’s condition to a persistent uptick in dollar demand, fueled by businesses replenishing inventory and individuals seeking education abroad.
The CBN’s recent reforms signal a move towards a market-driven exchange rate, removing caps on international money transfers and promoting a more flexible forex regime. This aims to enhance price discovery and transparency while emphasizing ethical standards in forex transactions.
