The naira, on Thursday, saw an improvement across both the parallel and official foreign exchange (FX) markets as demand for the U.S. dollar moderated amidst an ongoing currency shortage.
According to data from the Central Bank of Nigeria (CBN), the local currency appreciated by 0.85 percent, or ₦13, in the Electronic Foreign Exchange Matching System (EFEMS). The dollar was quoted at ₦1,532 on Thursday, compared to ₦1,545 the previous day.
In the parallel market, the naira also gained ground, trading at ₦1,680 per dollar on Thursday, a ₦30 improvement from the ₦1,715 recorded on Wednesday. This gain was attributed to a moderate demand for dollars, despite the continued presence of speculative activity in the black market.
Authorised currency dealers in the official market quoted the dollar at a high of ₦1,550 on Thursday, which was stronger than the ₦1,557 recorded the day before. Meanwhile, the market saw a lowest bid of ₦1,515, the same as on Wednesday.
Earlier this week, the naira had reversed its five-day winning streak on Monday, as increased demand for the dollar among end users led to a depreciation of the local currency across various segments of the FX market. This shift in demand dynamics had a noticeable effect on the naira’s performance.
Olayemi Cardoso, the governor of the CBN, commented on the broader trends in the FX market, revealing in November 2024 that the Nigerian Autonomous Foreign Exchange Market had seen a significant increase in its average daily turnover.
