The Nigerian naira closed the week on a stronger note in the official foreign exchange window, appreciating to N1,626.00/$1 on Friday, according to data from the Central Bank of Nigeria (CBN). This marks a modest gain from the previous day’s close of N1,630.50/$1, and signals a relatively steady end to a week marked by notable currency fluctuations.
The naira’s performance throughout the week reflected investor uncertainty and shifting market dynamics. The currency opened on Monday at N1,629.00/$1, improved to N1,615.00/$1 on Tuesday, then dipped to N1,644.00/$1 on Wednesday. A rebound followed on Thursday with the naira closing at N1,630.50/$1 before finishing the week slightly stronger on Friday.
Though the mid-week dip highlighted continued volatility, the naira’s ability to regain ground suggests pockets of investor confidence in the official market, driven by ongoing monetary interventions and efforts to manage liquidity.
Meanwhile, the parallel (black) market showed relative stability despite mild fluctuations. The naira ended the week at N1,624.35/$1, a slight depreciation from N1,621.00/$1 recorded on Thursday. Throughout the week, the currency traded within a narrow band: starting at N1,585/$1 on Tuesday, firming up to N1,580/$1 by Wednesday, then weakening toward the end of the week.
Market analysts continue to link the disparity between official and parallel market rates to persistent foreign exchange demand pressure, speculative trading behavior, and constrained FX supply. These factors have made it difficult to fully unify rates across market segments.
Cross-currency data at the end of Friday’s session showed the naira trading at N2,090.57/£1 and N1,815.82/€1, reflecting broader global currency trends and the strength of the US dollar. At the same time, the official rate of N1,591.85/$1—another benchmark reported by the CBN—highlights the inconsistencies still present in FX pricing and access across platforms.
The Central Bank continues to implement measures aimed at improving FX liquidity, including direct interventions and weekly dollar sales to Bureau De Change operators. Additionally, the focus on enhancing non-oil exports and tightening speculative activity underscores efforts to stabilize the naira and support macroeconomic recovery.
While short-term fluctuations persist, the naira’s end-of-week recovery offers cautious optimism as policymakers navigate complex foreign exchange dynamics.
