The naira appreciated further on Monday in the foreign exchange (FX) market due to reduced demand for the dollar and policies introduced by the Central Bank of Nigeria (CBN). The local currency strengthened by 1.3 percent, with the dollar quoted at an average rate of N1,599.33 in the parallel market. This represents a gain of N20.67 from the N1,620 rate recorded on Friday.
Variation in black market rates
Black-market rates varied across locations, with some traders quoting the naira at N1,610, while others recorded rates of N1,605 and N1,583, depending on trading activity in different areas.
Read also: Naira strengthens to 8 -month high as dollar demand declines
Performance in official FX market
On the official market, the naira reached N1,474.78/$ on Friday, its highest level in eight months. The appreciation reflects reduced demand for the dollar and a series of monetary and fiscal policies introduced by the government.
Factors Driving the Naira’s RecoveryThe currency’s stronger position follows an increase in local petrol refining capacity, higher dollar inflows, and CBN’s sustained policy measures over the past 17 months. On June 3, 2024, the naira traded at N1,485.99/$ in the Nigerian Foreign Exchange Market (NFEM), showing a continued improvement in value.
