Naira Makes Significant Gains to Close the Week on a Positive Note

The naira experienced a notable appreciation against the dollar in the foreign exchange market, closing the week on a positive note after several days of depreciation.

According to data from FMDQ, the naira strengthened to N1600.78 per dollar on Friday, compared to N1660.49 on Thursday. This marks a gain of N59.71.

The improvement came alongside a surge in foreign exchange transactions, which increased to $350.72 million on Friday, up from $330.18 million the previous day. The naira’s appreciation followed three consecutive days of depreciation earlier in the week, marking a volatile trading period where the currency gained value twice and lost value three times at the official market.

However, at the parallel market, the naira weakened further, falling to N1725 per dollar on Friday from N1705 on Thursday.

In recent months, the naira has faced significant fluctuations against the dollar, despite efforts by the Central Bank of Nigeria (CBN) to stabilize the currency through various interventions. CBN Governor Olayemi Cardoso recently noted that while the naira remains weak, it could still present opportunities for the country, particularly with increased foreign investment.