Dollar To Naira Rate: Nigerian Currency Regains Value In Parallel Market

The Nigerian currency, the Naira, strengthened to ₦1,600 per dollar in the parallel market, up from ₦1,605 per dollar the previous week.

Similarly, the naira rose to ₦1,540 per dollar in the Nigerian Foreign Exchange Market (NFEM).

Naija News reports that the naira has continued its upward trend since May 29th, having gained ₦47 against the dollar to date in the official market.

Data released by the Central Bank of Nigeria (CBN) indicated that the exchange rate for the naira decreased to ₦1,540 per dollar from ₦1,551 per dollar last Thursday, reflecting a ₦11 appreciation for the naira.

As a result, the gap between the parallel market and NFEM rate expanded to ₦60 per dollar, compared to ₦54 per dollar the day before.

Nevertheless, analysts at Afrinvest West Africa Limited, in their monthly report, forecasted that the naira will exhibit mixed performance across the foreign exchange market this month, influenced by the CBN’s ongoing interventions.

In the currency market, the performance of the Naira varied. Specifically, the Naira gained 0.7 per cent m/m against the base currency to ₦1,586.15 per dollar at the NAFEM window while it weakened by 1.2 per cent m/m at the parallel market to close at ₦1,615.00 per dollar.

“Next month, we anticipate the Naira will maintain similar performance across FX segments, supported by CBN’s continued intervention,” the firm predicted.