Naira strengthens to N1,599.33 in black market

Naira stability continued on Monday across the foreign exchange (FX) market, fuelled by a reduction in the demand for the dollar and various policies from the Central Bank of Nigeria (CBN).

By the close of trading on Monday, the naira saw a 1.3 percent increase, with the dollar being quoted at an average rate of N1,599.33. This marked a N20.67 gain over the N1,620 rate recorded on Friday at the parallel market, commonly referred to as the black market.

While some areas recorded the naira trading at N1,610, other areas saw rates of N1,605 and N1,583, depending on where black-market operators were active.

On the official FX market, the naira rose to its highest level in eight months, reaching N1,474.78/$ as of Friday, with demand for the dollar easing due to a series of fiscal and monetary policies enacted by the government.

On June 3, 2024, the naira was valued at N1,485.99/$ in the Nigerian Foreign Exchange Market (NFEM). The currency’s stronger position today after eight months can be attributed to several factors, including increased local petrol refining capacity, greater dollar inflows, and the CBN’s effective policy measures over the past 17 months.