The naira made a notable recovery against the dollar at the parallel foreign exchange market on Tuesday, marking its first recorded gain this week. The development comes amid ongoing fluctuations in Nigeria’s currency value as economic analysts continue to monitor trends in the forex market.
A Bureau de Change (BDC) operator in Wuse Zone 4, Abuja, Idris Yunusa, confirmed in an interview with DAILY POST that the naira strengthened to N1,580 per dollar in the parallel market. This marks an improvement from the previous exchange rate of N1,585 recorded on Monday, reflecting a N5 gain within a 24-hour period.
Meanwhile, in the official forex market, the naira depreciated against the dollar. According to data released by the Central Bank of Nigeria (CBN), the official exchange rate stood at N1,532.93 per dollar on Tuesday, showing a decline from N1,528.03 per dollar recorded on Monday. This represents a N4.90 drop in the value of the naira in the regulated forex market.
The latest movement in the exchange rate highlights the volatility of the Nigerian currency amid ongoing economic concerns. Despite the recent strengthening in the black market, traders and financial experts remain cautious due to persistent macroeconomic challenges affecting the naira’s stability.
The fluctuation in the exchange rate comes at a time when Nigeria’s economic indicators show mixed signals. While there has been a reported drop in the nation’s inflation rate, concerns over foreign exchange liquidity, trade balance, and monetary policies continue to weigh on the naira’s performance in both formal and informal currency markets.
Financial experts predict that the naira’s short-term movement will be largely influenced by policy decisions from the CBN, forex inflows from remittances, and external economic factors that impact Nigeria’s foreign reserves.
As stakeholders in the financial sector assess the latest development, many are hopeful that sustained interventions and economic reforms will help stabilize the exchange rate and restore investor confidence in the Nigerian economy.