The naira rose to a five-month high of N1,338.59 against the dollar in the official foreign exchange market on Thursday. The gain was supported by improved dollar liquidity and stronger external reserves.

According to data from the Central Bank of Nigeria, the local currency appreciated by N5 compared with the previous day’s rate of N1,343.59 at the Nigerian Foreign Exchange Market.

In the parallel market, also known as the black market, the naira also gained ground. It rose by N8 to close at N1,397 per dollar on Thursday, up from N1,405 the day before.

The difference between the official and parallel market rates narrowed to 4.41 per cent on Thursday from 4.62 per cent on Wednesday. This indicates a slight reduction in the gap between the two markets.

The latest movement reflects ongoing efforts to stabilise the currency amid improving foreign exchange supply. Market watchers continue to monitor liquidity conditions and external buffers as key factors supporting the naira’s performance.

Photo credit: Punch Newspaper