Naira Strengthens Significantly Against Dollar in Both Official and Black Markets

The Naira experienced a notable appreciation against the US Dollar in both the official and parallel foreign exchange markets on Friday, wrapping up the week with strong gains.

According to the Central Bank of Nigeria’s (CBN) exchange market data, the Naira strengthened to N1,535 per dollar on Friday, up from N1,567 per dollar on Thursday. This marks a significant gain of N32 against the dollar.

FMDQ data revealed that the Naira’s exchange rate ranged between N1,480 and N1,700.76 per dollar by the close of business on Friday.

In the parallel market, also known as the black market, the Naira gained ground, strengthening to N1,600 per dollar from N1,715 on Thursday, reflecting an appreciation of N115.

Overall, foreign exchange transactions saw a turnover of $175.5 million, as reported by FMDQ on Friday.

Over the course of the week, the Naira gained a total of N125 against the dollar in the official market, according to the CBN’s data.

This positive shift follows the Central Bank’s announcement at the end of November 2024 of new interventions in the FX market. As part of these efforts, the CBN directed banks to transition to the Bloomberg BMatch system for FX trading starting December 2, 2024. Additionally, the apex bank increased the minimum FX trading limit to $100,000 from the previous $50,000.