Naira makes gain, exchanges for N1,550/$ in parallel market

The Naira today appreciated to N1,550 per dollar in the parallel market from N1,555 per dollar on Thursday.

However, the Naira depreciated to N1,532 per dollar in the Nigerian Foreign Exchange Market (NFEM).

Data published by the Central Bank of Nigeria, CBN, showed that the exchange rate for the Naira rose to N1532 per dollar from N1,531 per dollar on Thursday, indicating a depreciation of N1 for the Naira.

Consequently, the margin between the parallel market and NFEM rate narrowed to N18 per dollar from N24 per dollar the previous day.

This week, the Naira weakened by N2.5 against the dollar in the parallel market.

But the local currency gained N15 against the dollar this week after opening at a depreciation of N1,565 per dollar in the official market.

The common trend in both markets is that the Naira remained within the N1,500 per dollar threshold this week.

Analysts, though marvelling, attributed the N1,500 per dollar threshold of the official and parallel market exchange rates to the CBN’s continuous interventions to save the Naira.
In their first half of 2025 review and second half of the year outlook, analysts at Afrinvest West Africa Limited said: “Furthermore, the only major positive surprise to our projections has been the exchange rate. Contrary to our initial average projection of N1,804.45 per dollar for the year, the Central Bank of Nigeria (CBN) has successfully stabilized the Naira exchange rate within N1,550.10 per dollar to N1,620 per dollar, compared to the record volatility recorded in 2023 (down 48 percent to N907.11 per dollar) and 2024 (down 41 percent to N1,538.25 per dollar).
“This achievement has been driven by improved market transparency, tech-driven trading enhancements, strategic foreign exchange, FX interventions, attractive OMO bill yields, reduced FX demand for energy imports (due to supply from the Dangote Refinery), and effective curtailment of speculative trading. “Consequently, we have revised our average exchange rate projection for 2025 to a more bullish N1,577.25 per dollar.”