The Nigerian Naira sustained its upward trajectory against the United States dollar at the official foreign exchange market, closing the week on a firm footing as data from the Central Bank of Nigeria (CBN) showed a further strengthening of the local unit.
According to figures released by the apex bank, the Naira appreciated to N1,357.61 per dollar at the close of trading on Friday, compared with N1,357.65 recorded on Thursday. The marginal gain of N0.04 on a day-to-day basis underscores a pattern of incremental appreciation that has characterized the official window in recent sessions.
Beyond the daily movement, a market report by Media Talk Africa indicated that the cumulative appreciation at the official segment amounted to N8.08 against the greenback over the review period. Market records show that the currency has posted more days of appreciation than depreciation in the recent period, with only a single instance of value loss, reflecting improved liquidity conditions and the impact of ongoing monetary policy interventions.
At the same time, the country’s external reserves maintained their growth momentum, climbing to $52.26 billion as of Thursday, based on CBN statistics. The increase extends a recent trend of reserve accumulation, providing the monetary authority with additional capacity to meet foreign exchange demand and support the currency.
Activity in the parallel market, however, remained subdued. The Naira Traded flat at N1,425 per dollar on Friday, mirroring the rate quoted on Thursday. The lack of movement in the informal segment highlights the persistent gap between the official and parallel market rates, a divergence that policymakers have sought to narrow through various reform measures.
The convergence of a strengthening official rate, rising external reserves, and a stable parallel market presents a mixed but broadly positive picture for Nigeria’s foreign exchange landscape. While the official window continues to show resilience, market participants will be monitoring the sustainability of the current trend, particularly in light of global oil price dynamics and domestic fiscal developments. The central bank’s ability to maintain reserve accretion and ensure consistent supply at the official market will be critical in determining the Naira’s trajectory in the near term.
