The naira appreciated to N1605/$1 in the parallel market on Thursday, ahead of Sallah, from N1610/$1 the currency traded at on Wednesday.
Data from Naijaonpoint research shows that this is the second time in four days the currency appreciated in four days at the parallel market.
According to Naijaonpoint sources, the currency started the week on Monday at N1610/$1.
It appreciated to N1607/$1 on Tuesday.
The Federal Government has officially declared Friday, June 6, and Monday, June 9, 2025, as public holidays across Nigeria to commemorate the Eid-ul-Adha.
The naira showed consistent appreciation throughout the week. On Wednesday, the naira closed at N1,564/$1, according to data on the Central Bank of Nigeria’s (CBN) website. This is against the N1579/$1 that the currency traded for on Tuesday, up from N1,580/$1 on Monday.
As of the time of filing this report, the official market is yet to close, so data for the official market for Thursday is yet to be out.
Naijaonpoint data shows that the naira started the week against the British Pounds Sterling at N2,175.00/£1 before appreciating to N2,165.00/£1 on Tuesday. However, the naira depreciated to N2,210.00/£1 on Wednesday before again appreciating to N2,160.00/£1 on Thursday.
The naira also showed a similar pattern against the Euro during the week. The naira started the week at N1,810.00/€1 on Monday. It stayed the same on Tuesday at N1,810.00/€1 before depreciating to N1,815.00/€1 on Wednesday. Currently, Naijaonpoint data shows the naira has appreciated to N1,805.00/€1 in the parallel market.
In mid-April 2025, the Nigerian naira depreciated further in the official foreign exchange market, falling to N1,600.50/$1, a slight drop from N1,599.00/$1, ahead of the Easter holiday.
The official exchange rate earlier stood at N1,604.00/$1 on Tuesday and N1,599.00/$1 on Monday, showing consistent fluctuations amid sustained demand pressure for the U.S. dollar.
Analysts attribute the naira’s sustained appreciation to increased foreign portfolio inflows and anticipation of the upcoming Eid el-Kabir holidays scheduled for June 6 and 9, 2025. The holiday-driven demand for naira is likely boosting dollar supply across various channels.
The currency’s recent gains reflect growing investor confidence and an improved foreign exchange (FX) supply environment. However, analysts caution that maintaining this momentum will require consistent inflows and supportive monetary policies.
The continued convergence of rates in both the official and parallel markets suggests a narrowing gap between the two, pointing to improved market alignment. This development coincides with the expiration of the CBN’s deadline for Bureau De Change (BDC) operators’ recapitalization on Tuesday, June 3, 2025.