ABUJA – Good news for the Nigerian currency as the naira appreciates notably against the US dollar to kick off the week. This encouraging rebound was seen across various foreign exchange markets, offering a glimmer of hope for greater currency stability after a period of uncertainty.
In the busy parallel market, often called the black market, the naira showed impressive strength. It gained ₦13 on the dollar, firming up from ₦1628 last Friday to ₦1615 on Monday. Abubakar Alhasan, a Bureau de Change operator in Wuse Zone 4, Abuja, confirmed this positive shift. “We buy at ₦1605 per dollar and sell at ₦1615,” Alhasan shared with DAILY POST. This clearly shows the naira appreciates in these crucial informal trading circles.
Official Window Reflects Upward Trend as Naira Appreciates
It wasn’t just the parallel market celebrating; the official exchange market also posted gains for the naira. The national currency climbed by ₦4.57 against the US dollar. Fresh data from the Central Bank of Nigeria (CBN) reveals the official naira dollar rate improved from ₦1586.15 per dollar on Friday to ₦1581.58 on Monday. This positive movement hints at a potential recovery in market confidence following weeks of fluctuating values. Financial analysts suggest that coordinated efforts by Nigeria’s financial authorities to steady the currency might be gradually paying off.
Why the Naira’s Boost? Investment and Festive Cheer Play a Role
What’s behind this welcome surge? Market insiders point to a couple of key drivers. Firstly, there’s renewed interest from foreign portfolio investors, bringing fresh capital into the country. Secondly, the upcoming Eid el-Kabir holidays, set for June 6 and 9, 2025, are also having an impact. “There’s increased activity in the market due to expected spending during the Sallah celebration, coupled with new investor interest,” one trader explained.
This blend of economic activity and festive season spending appears to be bolstering demand for the naira. In turn, this is helping to ease the pressure on the foreign exchange supply chain. The current trend suggests the naira appreciates thanks to both these economic undercurrents and seasonal factors.
By Abdullah Korede
