By Anastasia John E.
The naira, over the weekend, gained N45 against the dollar at the parallel foreign exchange market following a week-on-week analysis.
The analysis of the FX trade review at the black market from Monday, 3 February 2025, to 7th, showed that the naira appreciated by N40 to N1,565 per dollar from N1,610.
According to analysts, the naira’s positive performance can be attributed to increased supply of foreign exchange in the market, as well as the central bank’s efforts to stabilize the currency.
This latest appreciation of the naira is a positive sign for the economy, as a stronger currency can help to reduce inflation and boost confidence in the markets. It also indicates that the efforts of the central bank to improve the foreign exchange market are starting to yield results.
However, experts warn that the exchange rate in the parallel market is still significantly higher than the official rate, which is currently around N410 to the dollar. This highlights the need for continued reforms in the foreign exchange market to ensure stability and reduce the spread between the official and parallel rates.
The development is coming amid reforms by the Central Bank of Nigeria as it recently announced efforts towards effective implementation of its newly introduced FX code.
