Naira Strengthens in Parallel Market Amid Fluctuations

The Naira has strengthened by N15 against the dollar in the parallel foreign exchange market over the past five days. Data analysis for the week indicates that the Naira appreciated on Wednesday, Thursday, and Friday, closing at N1,565 per dollar compared to N1,580 at the start of the week on Monday.

However, in the official foreign exchange market, the Naira recorded a slight decline, settling at N1,507.8 per dollar as per the latest data from the Central Bank of Nigeria (CBN) released on Thursday. The CBN’s Friday exchange rate figures were yet to be published at the time of this report.

The currency’s movement over the past week highlights a mixed trend in Nigeria’s forex markets, with fluctuations occurring in both directions. Commenting on the impact of exchange rates on inflation, Benson Idahosa, President of the Lagos Chamber of Commerce and Industry, suggested that an exchange rate of N1,300 per dollar could help curb Nigeria’s rising inflation.

The CBN is set to introduce new monetary policies during its 299th Monetary Policy Committee meeting, scheduled for February 19 and 20, 2025.