The Nigerian naira extended its appreciation against the United States dollar at the official foreign exchange window on Friday, closing the week on a positive trajectory. Data released by the Central Bank of Nigeria showed the local currency strengthened to N1,346.49 per dollar, compared with N1,347.63 recorded at the close of trading on Thursday.
The marginal day-to-day gain of N1.14 marked another session of stability in the official market, where the naira has demonstrated consistent resilience in recent trading sessions. Over the course of the week, the currency accumulated a gain of N11.12 against the greenback on a week-on-week basis, despite a single session of depreciation recorded on Wednesday.
Activity in the parallel market told a different story. The naira held steady at N1,405 to the dollar on Friday, mirroring the rate observed a day earlier. The persistent gap between the official and parallel rates underscores the structural segmentation that continues to define Nigeria’s foreign exchange landscape.
The incremental gains at the official window come against the backdrop of a modest recovery in the country’s external buffers. Foreign reserves stood at $52.66 billion as of mid-August, providing the central bank with a degree of firepower to support its market intervention strategy. Analysts have attributed the recent official market firming to improved dollar liquidity from crude oil proceeds and sustained CBN supply-side measures.
Market participants are closely monitoring whether the current momentum can be sustained into the new week, particularly as demand pressures from importers and portfolio investors typically intensify at month-end. The central bank’s ability to maintain a stable supply trajectory will be critical in anchoring expectations and narrowing the premium that continues to drive activity toward the informal segment.
Friday’s performance reinforces a pattern of gradual appreciation that has characterised the official market since the implementation of recent reforms. While the parallel market remains unresponsive to official window movements, the narrowing of intraday volatility at the CBN platform suggests growing confidence in the price discovery mechanism.
