BREAKING: Naira appreciates against dollar in parallel market

The Nigerian Naira has continued its upward trend against the U.S. dollar in the parallel foreign exchange market.

On Thursday, the Naira appreciated to ₦1,500 per dollar in the black market, improving from ₦1,505 recorded on Wednesday.

A Bureau de Change (BDC) operator in Wuse Zone 4, Abubakar Alhasan, confirmed the development, stating, “The minimum selling rate for dollars on Thursday was ₦1,500, compared to ₦1,505 the day before.”

According to Naija News, this marks a ₦5 appreciation in the Naira’s value against the dollar within a day. The currency has consistently gained strength in the parallel FX market in recent weeks.

In contrast, the official exchange rate stood at ₦1,509.03 per dollar on Wednesday, rising from ₦1,507.2 on Tuesday, as reported by the Central Bank of Nigeria (CBN). The narrowing gap between the official and parallel market rates indicates a gradual convergence of exchange rates.

Meanwhile, the CBN has opted to keep all monetary policy parameters unchanged following its 299th Monetary Policy Committee (MPC) meeting—the first session of 2025.

CBN Governor Olayemi Cardoso announced that the committee unanimously agreed to maintain the current monetary policy stance. Key decisions include:

Monetary Policy Rate (MPR): Retained at 27.50%

Asymmetric Corridor: Maintained at +500/-100 basis points

Cash Reserve Ratio: Kept at 50% for Deposit Money Banks and 16% for Merchant Banks

Liquidity Ratio: Held at 30%

The committee expressed confidence in recent macroeconomic trends, anticipating positive effects on price stability in the near to medium term.

Governor Cardoso highlighted growing stability in the foreign exchange market, contributing to exchange rate appreciation and a gradual decline in Premium Motor Spirit (PMS) prices. However, he acknowledged persistent inflation risks, particularly driven by rising food prices.

The MPC emphasized the benefits of improvements in Nigeria’s external sector, which have supported exchange rate stability and aligned rates between the Nigeria Foreign Exchange Market (NFEM) and Bureau de Change (BDC) operators. The CBN was urged to sustain efforts to enhance market liquidity.

Addressing concerns about balancing economic growth and inflation control, Governor Cardoso noted that trade-offs exist.

“We have seen consistent accretion to reserves, and at one point, we recorded the highest level of reserves in the past three years. Inflation has also begun to decelerate,” he stated.

He asserted that investor confidence in Nigeria’s markets is growing, reflecting the CBN’s steady policy direction.

“As stability improves, we will be in a better position to moderate interest rates. Stability is key—without it, investors hesitate to enter the market. Our primary goal remains ensuring stability in the foreign exchange and financial markets. Achieving this will attract more investments and drive the much-needed economic growth,” Cardoso concluded.