CBN data shows Naira recovery as depreciation streak ends

The Nigerian naira recorded a slight but notable appreciation against the United States dollar at the official foreign exchange market on Friday, bringing an end to a three-day stretch of continuous losses.

According to figures released by the Central Bank of Nigeria (CBN), the naira appreciated to ₦1,547.36 per dollar, improving from the ₦1,549.41 recorded the previous day. This marks a ₦2.05 gain on a day-to-day basis, signaling a possible rebound in investor confidence after a turbulent week in the currency market.

At the parallel market, commonly referred to as the black market, the naira remained stable.

It exchanged at ₦1,600 per dollar, the same rate as Thursday. A Bureau De Change operator in Wuse Zone 4, Abuja, Mr. Abubakar Alhasan, said that the buying rate stood at ₦1,590, while the selling price was pegged at ₦1,600 as of Friday afternoon.

“We’ve seen little movement in the black market over the past few days. Supply and demand have remained fairly constant,” Alhasan explained.

A week-on-week analysis shows that the naira appreciated by ₦2.73 at the official market and by ₦6 at the parallel market, highlighting some resilience despite persistent economic pressures.

Analysts attribute the naira’s performance to slight improvements in Nigeria’s foreign exchange reserves and expectations of increased dollar inflows from crude oil sales and remittances.

However, they warn that the market remains volatile and heavily influenced by speculative activities and macroeconomic uncertainty.

The Central Bank has reiterated its commitment to stabilizing the foreign exchange market through various interventions, including tightening monetary policy, managing reserves efficiently, and curbing excess liquidity.

Financial experts continue to urge the federal government to strengthen fiscal discipline, encourage local production, and reduce dependence on imports to support a more stable and sustainable naira in the long term.