The Nigerian Naira recorded a slight appreciation against the U.S. dollar on Friday as demand pressures in the foreign exchange market began to taper. Data from the Central Bank of Nigeria (CBN) shows that the naira firmed up by 4.52 kobo, closing at N1,534.72 per dollar at the official market.
This improvement represents a modest gain of 0.05% from the previous day’s exchange rate of N1,534.79. Market watchers attributed the gain to the CBN’s proactive supply-side interventions, which have helped enhance liquidity and dampen speculative pressure.
The local currency had hovered around N1,535 for most of the week, trading at N1,535.62 on Wednesday and N1,535.24 on Tuesday. Monday’s opening rate saw a minor decline of 20 kobo, reflecting fluctuating sentiment before the late-week uptick.
Meanwhile, in the parallel market, the exchange rate held steady at N1,530, supported by reduced demand from unofficial foreign exchange buyers. Traders noted a dip in speculative activities as the narrowing gap between official and black market rates suggested increased market efficiency.
Financial analysts observed that the improving performance of the naira, especially in the context of reduced pressure from importers and dollar speculators, signals a maturing currency pricing structure. This, they said, could encourage more transparency and trust in the official market over time.
Some currency traders believe the current trend could continue, especially with the renewed ability of Bureau de Change (BDC) operators to meet client demands at more affordable rates. Analysts, however, warn that sustained stability will depend on long-term reforms and continued intervention from the apex bank.
