Naira ends volatile week stronger at N1,626.00/$1 on official market
BY TEMITOPE ADEBAYO
The naira closed last week on a firmer note against the US dollar at the official foreign exchange window, settling at N1,626.00/$1 on Friday, a slight appreciation from the previous day’s rate of N1,630.50/$1, according to figures from the Central Bank of Nigeria.
The local currency’s performance capped a week of wide swings that saw the exchange rate open at N1,629.00/$1 on Monday, strengthen to N1,615.00/$1 by Tuesday, weaken sharply to N1,644.00/$1 on Wednesday, and claw back losses to N1,630.50/$1 on Thursday before ending the week stronger. The naira’s late recovery signals modest resilience amid ongoing market volatility and sustained demand pressure for dollars.
The parallel market mirrored similar swings, closing at N1,624.35/$1 on Friday, slightly weaker than Thursday’s N1,621.00/$1. Throughout the week, the naira in the unofficial window ranged from N1,585.00/$1 at the start of trading to N1,624.35/$1 by the week’s end, as speculative demand and liquidity constraints continued to influence pricing.
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Cross-currency transactions also reflected the naira’s mixed showing. At Friday’s close, the currency traded at N2,090.57/£1 and N1,815.82/€1, underscoring the broader pressures facing the local unit in global currency markets.
Currency analysts and market watchers have linked the naira’s erratic movement to lingering FX illiquidity, speculative trading, and global economic uncertainties. Alhaji Aminu Gwadabe, President of the Association of Bureau De Change Operators of Nigeria, noted that speculative flows and cautious investor sentiment remain key drivers of the current volatility, while Dr. Muda Yusuf of the Centre for the Promotion of Private Enterprise identified global market trends as another key pressure point.
Despite the challenging landscape, analysts expect the naira to trade within a tight band in the coming days as the Central Bank of Nigeria maintains its market interventions and intensifies efforts to boost foreign exchange inflows from non-oil exports. Many believe further progress on rate unification and improved dollar supply are crucial for lasting currency stability.
