Naira appreciates to N1,395/$ in parallel market

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By Elizabeth Adegbesan

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The naira appreciated to N1,395 per dollar in the parallel market yesterday from N1,405 on Thursday, strengthening by N10 against the dollar.

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However, the currency remained stable at N1,322.5 per dollar in the Nigerian Foreign Exchange Market, NFEM, according to data from the Central Bank of Nigeria, CBN.

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Consequently, the gap between the parallel and official exchange rates narrowed to N72.5 per dollar from N82.5 on Thursday.

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Trading activity in the official market also increased, with interbank turnover reported at N113.9 million.

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On a weekly basis, the naira gained N13 against the dollar in the official market but weakened by N3 in the parallel market.

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Meanwhile, financial sector analysts said the near-term outlook for the naira remained cautiously positive, citing improved foreign exchange liquidity, rising external reserves and elevated crude oil prices as factors likely to continue supporting the currency.

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They, however, noted that developments in the foreign exchange market would remain dependent on liquidity conditions and movements in global oil prices.

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