Naira Continues Upward Trend, Strengthens in Parallel Market

The Naira has continued its upward trajectory, appreciating to N1,595 per dollar in the parallel market on Tuesday, up from N1,610 per dollar on Monday. This marks a N45 week-on-week gain from N1,640 per dollar last Tuesday.

In the official Nigerian Foreign Exchange Market (NFEM), the Naira remained stable at N1,499 per dollar, showing a N27.3 week-on-week appreciation from N1,526.3 per dollar last Tuesday. As a result, the margin between the parallel market rate and the NFEM rate narrowed to N96 per dollar, down from N113.7 per dollar last week.

This is part of an ongoing upward trend that started on January 23, when the Naira appreciated from N1,670 per dollar in the parallel market to N1,665 per dollar. Similarly, the official market saw the Naira rise to N1,548 per dollar from N1,553 per dollar on the same day.

Over the past week, the Naira has gained N75 in the parallel market and N54 in the official market. Currency traders attribute this positive movement to weak demand for the dollar, which was affected by the Chinese New Year holiday.

Additionally, reports suggest that banks are now more responsive to customer requests for Personal Travel Allowance (PTA) and Business Travel Allowance (BTA), a marked change from the previous practice where such requests were rarely honored.