Following Thursday’s trading session, the naira improved by 0.6%, with the dollar being quoted at N1,659.26, up from Wednesday’s close of N1,669.15 at the Nigerian Autonomous Foreign Exchange Market (NAFEM). This appreciation signals a relief for importers and businesses heavily reliant on foreign exchange, as it eases pressure on previously high dollar rates.
In the spot trading market, the dollar was quoted as high as N1,696, slightly above Wednesday’s low of N1,699. However, the intraday low stood at N1,601.48, reflecting a decrease from Wednesday’s high of N1,550. In the parallel market, or black market, the naira gained 0.90%, closing at N1,665 per dollar compared to the previous day’s N1,680.
This surge in dollar supply and the naira’s appreciation across both official and parallel markets have brought some optimism to Nigeria’s volatile FX market. Analysts expect that continued increases in dollar liquidity could further stabilize the naira, but sustained long-term stability will depend on ongoing efforts by the Central Bank of Nigeria and key market stakeholders.
For businesses and importers, the recent developments offer some relief from the previously elevated dollar rates, which had adversely affected profit margins and raised costs. If the trend continues, it could alleviate some of the financial burdens faced by sectors dependent on foreign exchange.