Exchange rate stabilises mid-week as Naira strengthens to N1,605/$1 in parallel market 

This comes after a brief fluctuation in the foreign exchange (FX) market earlier in the week.

According to data obtained by Naijaonpoint, the naira traded at N1,605/$1 (selling) and N1,602/$1 (buying) on Monday, February 3, 2025.

However, on Tuesday, February 4, 2025, the local currency depreciated slightly to N1,610/$1 before appreciating again to N1,605/$1 by Wednesday.

This week’s performance indicates an improvement compared to the previous week, where the naira traded at weaker levels.

Between Monday and Wednesday last week, the exchange rate stood at N1,660/$1 (Monday), N1,650/$1 (Tuesday), and N1,635/$1 (Wednesday) in the parallel market, suggesting that the currency has gained some strength over the past few days.

In the official market, the naira maintained stability, closing at N1,499/$1 on both Monday and Tuesday, according to data from the Central Bank of Nigeria (CBN).

This reflects steadiness in the regulated FX market, with no significant fluctuations observed.

For comparison, in the official market last week, the naira traded at N1,533.50/$1 on Monday, N1,520/$1 on Tuesday, and N1,506/$1 on Wednesday.

Beyond the US dollar, the naira also experienced fluctuations against other major currencies such as the British pound (GBP) and the euro (EUR). Below is the exchange rate movement from Monday to Wednesday:

Analysts suggest that the relative stability in the FX market could be attributed to improved dollar supply, CBN’s intervention strategies, and reduced speculation in the parallel market.

However, market watchers continue to monitor external factors such as crude oil prices, foreign reserves, and policy directives from the apex bank, which could influence future exchange rate movements.

As the week progresses, stakeholders will be keen to see if the naira maintains its current trajectory or faces renewed pressure in the FX market. For now, mid-week stability offers some relief to businesses and individuals engaged in forex transactions.