The Naira closed the week on a stronger note, recording three consecutive days of appreciation against the U.S. dollar at both the official and parallel foreign exchange markets.
Data from the Central Bank of Nigeria (CBN) showed that the local currency appreciated to ₦1,532.51 per dollar on Friday, compared to ₦1,534.52 on Thursday, marking a ₦2.01 daily gain at the official window.
Similarly, at the parallel (black) market, the Naira appreciated by ₦5, trading at ₦1,560 per dollar on Friday, up from ₦1,565 on Thursday.
On a week-on-week basis, the Naira strengthened by ₦1.05 in the official market and ₦5 in the parallel market.
The positive close comes against the backdrop of fresh economic data from the National Bureau of Statistics (NBS), which reported on Friday that Nigeria’s inflation rate eased to 21.88 percent in July, down from 22.22 percent in June.
Analysts’ Outlook
Market analysts say the Naira’s steady rebound signals cautious optimism, noting that improved foreign exchange supply and the recent slowdown in inflation may be offering temporary relief. However, they warn that the sustainability of the gains will depend largely on the Central Bank’s liquidity management and Nigeria’s ability to boost non-oil dollar inflows.
“While the appreciation is encouraging, the gap between the official and parallel markets remains significant. Unless structural reforms deepen and FX inflows rise, the pressure on the Naira could resurface in the coming weeks,” Lagos-based currency trader Ajibola observed.
