The Nigerian naira regained strength in the parallel market on Thursday, increasing by N25 compared to the dollar as the need for foreign currency moderated. This improvement happened after changes caused by speculative activities in the black market.
On Thursday, the naira was exchanged at N1,690 for one dollar, which was better than N1,715 on Wednesday. This shows that the market situation is getting better. Street traders said that the changing exchange rates were a big part of what’s happening in the market currently.
The naira has improved in the unofficial market, but it has not done as well in the official market. Earlier this week, the naira faced a drop in value in the official market. On Wednesday, it lost 1.3 percent, or 20 naira, compared to the dollar on the Central Bank of Nigeria’s (CBN) Electronic Foreign Exchange Matching System (EFEMS). According to CBN data, the dollar was worth 1,545 naira, up from 1,525 naira on Tuesday.
This drop was the second time the naira lost value in the official market since the EFEMS platform was introduced. EFEMS is designed to make foreign exchange transactions more transparent and efficient. The decrease in the naira’s value is due to higher demand for U.S. dollars, particularly among end-users seeking to meet foreign exchange obligations.
