Naira strengthens to N1,376 per dollar on the black market

The Naira's value surged in the parallel market, reaching an exchange rate of N1,376 per dollar, mirroring the official market rate, after previously standing at N1,387 per dollar on Thursday, according to Elizabeth Adegbesan.

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In contrast, the Nigerian Foreign Exchange Market, NFEM, saw the Naira's value decline to N1,375 per dollar.

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Central Bank of Nigeria, CBN, data revealed that the market's indicative exchange rate increased to N1,375 per dollar, up from N1,372.5 per dollar on Thursday, marking a N2.5 decline for the Naira.

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The difference between the parallel and official markets narrowed significantly, shrinking to N1 per dollar from N14.25 per dollar on Thursday.

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The interbank foreign exchange market experienced a substantial decline in turnover, plummeting 46.3 percent to $62.34 million from $116.04 million the previous day.

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Analysts at CowryAsset Management Limited forecast that the Naira will continue to face gentle pressure in the short term due to ongoing foreign exchange demand, as stated in their weekly financial outlook.

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According to the analysts, "Looking ahead, the naira may remain under mild pressure in the near term due to persistent FX demand, though rising external reserves could help cushion volatility."