In the parallel market, the value of the Naira increased to N1,500 per dollar on Monday, February 24th 2025 from N1,530 per dollar the previous weekend, continuing its upward trend and reaching its highest level in seven months.
The Vanguard reported that the last time the Naira fell below N1,500 per dollar on the parallel market was on Friday, June 21st of last year when it was trading at N1495 per dollar,
However, on the Nigerian Foreign Exchange Market (NFEM), the value of the Naira dropped to N1,504 per dollar.
According to data released by the Central Bank of Nigeria (CBN), the naira depreciated by N1.5 last weekend, as the indicative exchange rate increased to N1,504 per dollar from N1,502.5 per dollar the previous weekend.
As a result, the parallel market exchange rate was lower than the official market exchange rate for the first time in a long time. The difference between the two currencies decreased from N27.5 per dollar last Friday to negative N4 per dollar.
Also confirming this development, analysts at CardinalStone Research, the company’s forex market review, said on Monday that:
This development has caused the naira to appreciate 9.4% and 2.2% year-to-date (YtD) in the official and parallel markets from N1655 per dollar and N1538.5 per dollar at the end of the previous year.
Currency trader Rasaq Bello predicted that after the dollar supply continued to increase, the value of the Naira would continue to grow and stay steady between N1,490 and N1,500 per dollar.
Similarly, in their foreign exchange outlook for this week, analysts at CowryAsset Management Limited expect the naira to trade at a stable pace against the dollar.
TimesNow.com.ng reported that the managing director and CEO of Financial Derivatives Company (FDC), Bismarck Rewane, had cautioned policymakers against becoming careless due to the naira’s recent stability and increased predictability.
The economist cautioned Nigerian authorities not to be “carried away” by the rapid currency appreciation, saying it is “temporary” and should be handled carefully.
However, despite a persistent drop in external reserves, which have lost more than $3 billion this year, the naira remained stable throughout foreign currency (FX) markets.
Source: TimesNow.com.ng
