The Naira continues to gain strength, appreciating to N1,595 per dollar in the parallel market. This marks an improvement from N1,610 per dollar on Monday. Compared to last week’s rate of N1,640 per dollar, the currency has gained N45 in just one week.

In the official Nigerian Foreign Exchange Market (NFEM), the Naira remained stable at N1,499 per dollar. However, compared to last Tuesday’s rate of N1,526.3 per dollar, it recorded a weekly gain of N27.3.

Due to these improvements, the difference between the parallel market and official exchange rate has reduced to N96 per dollar, down from N113.7 per dollar last week.

The Naira has been on an upward trend since January 23, when it appreciated to N1,665 per dollar from N1,670 per dollar the previous day. Since then, it has gained N75 in the parallel market and N54 in the official market.

According to currency traders, this appreciation is due to low dollar demand, which has been influenced by the Chinese New Year holiday. Additionally, banks have started honoring customer requests for Personal Travel Allowance (PTA) and Business Travel Allowance (BTA), which was rare in the past.

With these positive developments, the Naira’s performance in the forex market remains promising. If the demand for dollars stays low and banks continue to support forex transactions, the Naira may continue to appreciate in the coming weeks.

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