The Naira extended its gains against the US Dollar at the official foreign exchange market on Monday, continuing its recent appreciation trend. According to data from the Central Bank of Nigeria, the naira strengthened to N1,357.77 per dollar, up from N1,366.23 at the close of trading last Friday, representing a gain of N8.46 in a single session.
However, the naira posted losses in the parallel market, where it fell by N5 to N1,430 per dollar from N1,425 per dollar last week, reflecting mixed investor sentiment across foreign exchange channels.
Analysts attribute the naira’s resilience at the official market to ongoing interventions by the central bank and strong foreign exchange inflows. The positive momentum coincides with a slight easing in the country’s inflation rate, with the National Bureau of Statistics reporting headline inflation at 15.06 percent in February.
Further supporting the naira, the central bank recently disclosed that Nigeria’s foreign reserves rose to $50.027 billion, providing additional stability for the currency amid global market fluctuations.
Despite the official market gains, the divergence with black market rates underscores ongoing demand pressures and the challenges of narrowing the gap between official and parallel exchange rates.
