The naira strengthened further on Wednesday after the Central Bank of Nigeria (CBN) allowed Bureau de Change (BDC) operators to resume participation at the official segment of the foreign exchange market, extending recent gains by the local currency.
At the close of trading, the naira appreciated to N1,348.95 per dollar at the Nigerian Foreign Exchange Market (NFEM), marking the first time it has traded below the N1,350 threshold since May 29, 2024, when it closed at N1,329.65 per dollar.
Data obtained from the CBN showed that the currency improved from N1,354.90 per dollar recorded on Monday. Month-to-date, the naira has gained N41.41 or 2.97 per cent compared to N1,390.36 per dollar at the beginning of the month.
On a year-to-date basis, the local currency has appreciated by N81.89 or 5.7 per cent from N1,430.84 per dollar recorded at the start of the year.
The latest appreciation reflects sustained gains at the official window, supported by improving external reserves and growing expectations ahead of the CBN’s forthcoming Monetary Policy Committee (MPC) meeting.
However, the parallel market remained relatively weaker, indicating mild but persistent demand pressure in the informal segment of the market. The naira traded at N1,443.68 per dollar on Tuesday, slightly weaker than N1,443.40 per dollar quoted on Monday.
Analysts say the improving reserve position and sustained gains at the official window suggest stronger foreign exchange liquidity conditions, as authorities continue efforts to stabilise the naira and narrow the gap between official and parallel market rates.
