After weeks of continuous depreciation, the naira recorded a 0.95% recovery on Monday as demand for the dollar slowed in the parallel market.
During intra-day trading, the naira was exchanged at N1,575 per dollar, marking a N15 appreciation compared to the N1,590 rate recorded last week.
Market Conditions Stabilizing
Currency traders noted a decline in demand for the dollar from end users, bringing relative calm to the market.
Last Friday, the naira hit a low of N1,590 in the parallel market due to a scarcity of dollars—a level it had previously reached on February 16, 2024, according to data from street traders and online tracking platforms.
Analysts at Afrinvest Securities Limited attributed the recent naira weakness to an imbalance in dollar supply and demand.
Naira Gains in Official Market
In the Nigerian Foreign Exchange Market (NFEM), the naira appreciated by 1.96% on Friday, recovering from nearly a week-long decline. It closed at N1,517.93 per dollar, reflecting a N29.88 gain from the N1,547.81 rate recorded on Thursday, according to data from the Central Bank of Nigeria (CBN).
External Reserves Show Growth
Meanwhile, Nigeria’s external reserves saw a slight increase of 5 basis points (bps) within a week, reaching $38.4 billion as of March 12, 2025, based on CBN data.
This improvement in foreign reserves and a moderating dollar demand suggest a potentially more stable outlook for the naira in the near term.
