Naira Rebounds, Closes at ₦1,517/$1 After Week-Long Decline

The Nigerian naira had a comeback on Friday, closing at ₦1,517.93/$1 in the official market after a 2.1% appreciation from Thursday’s rate of ₦1,550.36/$1.

This is the first recovery in over a week, erasing all losses recorded during the past seven days.

Throughout the week, the naira kept depreciating as a result of demand for the U.S. dollar outpacing supply.

The Central Bank of Nigeria (CBN) intervened by selling $336.85 million at rates between ₦1,524.5/$1 and ₦1,556/$1, yet the currency didn’t get a rebound.

However, improved liquidity on Friday saw the currency strengthen, with trading rates fluctuating between ₦1,480/$1 and ₦1,548/$1.

In the parallel market, the Nigerian currency held steady at ₦1,585/$1 against the dollar. It also made modest gains against the British pound, appreciating 0.25% to ₦1,985/£1 from Thursday’s ₦1,990/£1.

Against the euro, the naira rebounded by 0.30%, from ₦1,660/€1 to ₦1,655/€1.

The CBN efforts finally paid off at the end of the week with the naira recording improved liquidity against other foreign currencies.

Analysts anticipate that the CBN will continually provide support for the naira to gain stability.

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