The naira appreciated to 1,494.03/$ at the official market on Thursday, according to FMDQ Securities Exchange Limited.
It also strengthened in the parallel market to 1,510.00/$, narrowing the gap between both markets to 15.5/$.
The gap between the official and parallel market exchange rates is narrowing, driven by various Central Bank of Nigeria policies.
According to CardinalStone Research’s daily market report, the naira appreciated by 1.04% to 1,494.03/$ at the official window, while the parallel market rate strengthened by 1.66% to 1,510.00/$.
The naira continued its upward trend from the previous trading day. On FMDQ, it appreciated by 0.05% to 1,509.53/$, while the parallel market rate strengthened by 0.65% to 1,535.00/$.
The CBN’s recent directive extending dollar sales to Bureau De Change operators until May 30, 2025, has been identified as a key factor in the naira’s appreciation.
Earlier, the President of the Association of Bureau De Change Operators, Aminu Gwadabe, expressed optimism about the naira’s appreciation in a chat, according to The Punch.
He said, “The pick-up of the interbank proceeds to Bureaux de Change as directed by CBN is helping to inject liquidity and reduce panic in the market.”
Meanwhile, the naira’s appreciation coincides with the CBN’s Monetary Policy Committee decision to maintain the benchmark interest rate at 27.50% along with other key parameters on Thursday.
The MPC retained the asymmetric corridor around the MPR at +500/-100 basis points, the cash reserve ratio at 50% for deposit money banks and 16% for merchant banks, and the liquidity ratio at 30%.
