The Nigerian naira has experienced a significant appreciation against the United States dollar in the parallel foreign exchange market. According to Abubakar Alhasan, a Bureau De Change operator in Abuja, the naira strengthened to N1,490 per dollar on Wednesday, up from N1,520 on Tuesday. This represents a gain of N30 against the dollar on a day-to-day basis.

Alhasan confirmed that his bureau buys the naira at N1,480 and sells at N1,490 due to lower foreign exchange demand. The last time the naira was exchanged at this level in the black market was in June 2024. This development is a notable improvement in the value of the naira, which has been subject to fluctuations in recent times.

In the official market, the naira also experienced a marginal change, dropping by N1.19 to N1,488.56 per dollar on Wednesday, according to data from the Central Bank of Nigeria. The difference between the official and parallel markets has narrowed to 1.44, indicating a convergence of the exchange rates.

The appreciation of the naira across both markets follows an interest rate cut by the Central Bank of Nigeria by 50 basis points to 27 percent on Tuesday. This move is expected to have a positive impact on the economy, and the subsequent appreciation of the naira is a reflection of the market’s response to the policy change.

The significant appreciation of the naira in the black market is a welcome development, as it suggests an increase in investor confidence and a reduction in the pressure on the foreign exchange market. The narrowing of the gap between the official and parallel markets also indicates a move towards exchange rate unification, which is a key objective of the Central Bank of Nigeria’s monetary policy.

As the Nigerian economy continues to evolve, the performance of the naira will remain a key area of focus. The recent appreciation of the currency is a positive sign, but it is essential to sustain this momentum through prudent economic management and policies that support economic growth and stability.