Naira Strengthens Further, Hits N1,590 Against Dollar in Black Market
The naira on Wednesday appreciated to N1,590 per dollar, crossing the N1,600 psychological point in the black market. This marks a notable improvement in the local currency’s performance as it gains ground against the U.S. dollar.
Compared to the previous month, the naira has strengthened by 4.7 percent, rising by N75 from the N1,665 traded at the beginning of the year in the parallel market, popularly known as the black market. This trend reflects a sustained appreciation driven by improved market conditions and policy interventions.
On Tuesday, the local currency remained stable at an average rate of N1,600 per dollar, slightly changing from the N1,599.33 quoted on Monday in the black market. Meanwhile, at the official foreign exchange (FX) market, the naira steadied at N1,499 per dollar at the Nigerian Foreign Exchange Market (NFEM), the official FX platform of Africa’s fourth-largest economy, according to data from the Central Bank of Nigeria (CBN).
Currency dealers attribute the naira’s appreciation to an improved dollar supply and moderation in demand for the greenback, following the Central Bank’s policies aimed at stabilizing the exchange rate. The apex bank’s strategic interventions have played a crucial role in fostering liquidity and reducing market volatility.
Olayemi Cardoso, Governor of the Central Bank of Nigeria, noted that the increased capital flows and relative stability in the foreign exchange market have significantly contributed to the narrowing of exchange rate disparities across different market segments. He emphasized that the bold tightening measures implemented since the beginning of the year have been instrumental in achieving these positive results.
As the naira continues to gain strength, market analysts anticipate further stabilization in the foreign exchange market, provided that policy measures remain consistent and external economic conditions remain favorable.
