Lagos, Nigeria — Naira don appreciate small against US dollar for official forex market as dem close week for Friday at N1,626.00/$1. Dis na better news compared to previous day’s rate of N1,630.50/$1. Data from Central Bank of Nigeria (CBN) show say naira don experience some ups and downs during di week.
For Monday, naira start at N1,629.00/$1 but touch N1,615.00/$1 on Tuesday. By Wednesday, e weak again to N1,644.00/$1 before climbing back to N1,630.50/$1 on Thursday and finalmente stronger on Friday at N1,626.00/$1. Dis slight recovery show say investors get small positive sentiment for official window.
In di parallel market, naira also gree fluctuate small but remain mostly stable throughout di week, closing at N1,624.35/$1. Dis figure show small depreciation from N1,621/$1 wey e been get the day before. During di week, naira begin trade in di parallel market on Tuesday at N1,585/$1, rise to N1,580/$1 on Wednesday, then drop to N1,621/$1 on Thursday, before settling at N1,624.35/$1 on Friday.
Market analysts attribute di differences for official and parallel market rates to demand pressure, FX illiquidity, and speculative trading behavior. For Friday closing, di CBN rate show say naira exchange for N1,591.85/$1. Against other major currencies, naira be like N2,090.57/£1 and N1,815.82/€1.
Di CBN dey continue with intervention policies to stabilize di forex market. Dis include weekly sales to Bureau De Change operators and ongoing efforts to boost FX supply from non-oil sources. According to Alhaji Aminu Gwadabe, wey be President of di Association of Bureau De Change Operators of Nigeria (ABCON), di forex market volatility dey come from both local and global uncertainties.
Dr. Muda Yusuf, CEO of di Centre for di Promotion of Private Enterprise (CPPE), echo di same thoughts, linking naira struggles to global developments and speculative pressures. Analysts also talk say naira fit continue trading within a tight range for di coming week, depending on how much FX liquidity CBN go provide and foreign inflows wey come enter Nigerian economy.
Even though di short-term picture look tricky, sustained efforts to unify rates and minimize speculation go be key for long-term stability for di currency.
