
The Nigerian Naira recorded a strong performance against the US dollar over the past week, appreciating in both the official and parallel foreign exchange markets.
From Monday, January 27, 2025, to Friday, January 31, 2025, the Naira posted significant gains, reflecting improved market confidence and policy adjustments by the Central Bank of Nigeria (CBN).
Performance in the Official Market
At the official FX market, the Naira strengthened to ₦1,478.78 per dollar by the end of the week, improving from ₦1,533.63 at the start of the week. This represents a ₦54.85 gain on a week-on-week basis.
Black Market Gains
In the parallel (black) market, the Naira also saw notable appreciation, climbing to ₦1,610 per dollar by Friday, January 31, from ₦1,660 on Monday. This reflects a ₦50 gain in the unofficial market within the same period.
CBN Policies Driving Naira’s Appreciation
The recent improvement in the Naira’s value has been linked to policy interventions by the CBN, particularly the introduction of the FX Code on Tuesday, aimed at ensuring greater transparency in the foreign exchange market.
Additionally, CBN Governor Olayemi Cardoso reiterated the need for compliance with the new FX Code, warning banks against violations that could distort the market.
The sustained implementation of these reforms is expected to influence the Naira’s trajectory in the coming weeks.