In a surprising turn of events, the naira appreciates significantly against the dollar, gaining N105 in the black market over the past month.
As of Monday, the dollar trades at N1,560, a notable decrease from N1,665 at the start of the month.
“The market has been calm, demand has reduced, and there are more dollars available,” says Mohammed Abba, an Abuja street trader in a phone conversation with our correspondent. He adds, “We are buying dollars for N1,540 and selling at N1,560.” This shift indicates a growing stability in the parallel market, which has been historically volatile.
In the official market, the naira also shows signs of strength, rising by 1.8% between January and February 2025.
The Nigeria Foreign Exchange Market (NFEM) reports that the naira closed at N1,511 per dollar on Friday, a gain of N27.50 from the previous month’s rate of N1,538.50.
Economists suggest that increased dollar availability and reduced demand are key factors behind the naira’s recent performance. “The current trend reflects a healthier exchange environment,” notes an analyst from the Central Bank of Nigeria (CBN).
