Naira Gains Strength Against Dollar in Parallel Market

The Naira continued its upward trend against the US dollar in the parallel foreign exchange market, following ongoing reforms by the Central Bank of Nigeria (CBN).

Bureau de Change operators in Wuse Zone 4, Abuja, reported that the Naira traded at N1,590 per dollar on Wednesday, marking a N10 appreciation from the previous day’s rate of N1,600. The official exchange rate, however, saw a slight decline, settling at N1,499.76 per dollar on Wednesday compared to N1,498.95 on Tuesday.

Over the past few days, the Naira has shown consistent gains against the dollar in the black market. This positive movement is largely attributed to the CBN’s recently introduced Foreign Exchange Code, aimed at enhancing transparency in the FX market. Additionally, the apex bank has extended FX sales to Bureau de Change operators until May 2025, further supporting liquidity.

These developments come amid global economic shifts, including trade tensions initiated by former US President Donald Trump. The US recently imposed a 10 percent tariff on selected imports from China, prompting retaliatory measures from Beijing, including a 15 percent tariff on American coal and liquefied natural gas.