The naira extended its rally on Wednesday, appreciating to N1,348.95 per dollar at the Nigerian Foreign Exchange Market (NFEM) following the Central Bank of Nigeria’s (CBN) decision to allow Bureau de Change (BDC) operators resume participation at the official window.
The latest gain marks the first time the local currency has traded below the N1,350 threshold since May 29, 2024, when it closed at N1,329.65 per dollar.
Data from the CBN showed the naira strengthened from N1,354.90 per dollar recorded on Monday, underscoring renewed momentum at the official segment of the market.
Month-to-date, the currency has appreciated by N41.41, representing a 2.97 per cent gain from N1,390.36 per dollar at the start of the month. On a year-to-date basis, the naira has strengthened by N81.89, or 5.7 per cent, compared to N1,430.84 per dollar at the beginning of the year.
The rally follows the CBN’s move to reopen the official foreign exchange window to licensed BDC operators — a policy shift analysts say is aimed at boosting liquidity and improving price discovery in the market.
Market watchers attribute the sustained appreciation to improved external reserves and heightened investor confidence ahead of the apex bank’s upcoming Monetary Policy Committee (MPC) meeting.
Despite the gains at the official window, the parallel market remained relatively softer, reflecting lingering demand pressures. The naira traded at N1,443.68 per dollar on Tuesday, marginally weaker than N1,443.40 per dollar quoted on Monday.
Analysts note that the narrowing spread between the official and parallel market rates signals improving liquidity conditions, as monetary authorities continue efforts to stabilise the currency and restore confidence in the foreign exchange market.
