Naira gains to N1,610/$1 in parallel market, signals renewed strength
BY TEMITOPE ADEBAYO
The naira gained ground against the US dollar in the parallel market on Monday, appreciating to N1,610/$1, up from Friday’s rate of N1,630/$1, according to data from currency dealers in Lagos.
This marks a significant recovery after a volatile performance in May when the naira weakened by 1.24 per cent. The worst point in May was recorded on 15 May at N1,635/$1, before it rebounded slightly. From 21 to 29 May, the currency traded in a narrow band between N1,618/$1 and N1,625/$1.
In the official market, trading was still ongoing as of press time, but Central Bank of Nigeria (CBN) figures showed that the naira remained relatively stable from 23 to 30 May, trading between N1,579/$1 and N1,592/$1. This was an improvement from early May when it fluctuated between N1,607/$1 and N1,612/$1.
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The naira also appreciated against other major currencies. It was exchanged at N2,175/£1 on Monday, up from N2,190/£1 on Friday. Against the Euro, it strengthened to N1,810/€1, from N1,815/€1.
The currency’s appreciation reflects easing pressure in the foreign exchange market. While the parallel market remains volatile, the improvement is seen as a positive indicator of monetary stability.
Credit ratings agency Moody’s recently upgraded Nigeria’s sovereign rating from Caa1 to B3, citing improvements in external and fiscal positions. The agency also commended reforms that have strengthened the CBN’s foreign exchange reserves and boosted the balance of payments.
President Bola Tinubu described the upgrade as proof of his administration’s efforts to restore investor confidence, attract capital, and promote long-term economic prosperity.
