The naira extended its gains against the US dollar in the official foreign exchange market on Thursday, supported by improved dollar liquidity and stronger external reserves.
Data from the Central Bank of Nigeria (CBN) showed that the local currency appreciated by N1.87, with the dollar closing at N1,367.76 at the Nigerian Foreign Exchange Market (NFEM), compared with N1,369.63 recorded on Wednesday.
The movement represents a marginal 0.14 percent gain for the naira amid improving conditions in the foreign exchange market.
However, the naira weakened in the parallel market, where the dollar rose to N1,407 on Thursday from N1,400 the previous day, representing a 0.5 percent decline in the local currency’s value.
The development widened the gap between the official and parallel market rates to 2.93 per cent, up from 1.8 per cent recorded the previous day.
Meanwhile, activity in the interbank segment of the foreign exchange market slowed during the session, with total turnover falling 19.76 per cent to $334.13 million from $416.42 million recorded on Wednesday.
The number of transactions also declined to 122 deals from 198 deals recorded in the previous trading session.
The latest appreciation comes as improved dollar availability and stronger external reserves continue to provide support for the naira, even as trading volumes fluctuate in the official market.
The performance highlights the mixed dynamics in Nigeria’s foreign exchange market, with the official window recording modest gains while the parallel market experienced renewed pressure.
