The Nigerian Naira posted a modest gain against the US dollar in both the official and parallel foreign exchange markets on Friday, April 11, 2025, providing a small but noted movement after recent stability at slightly lower levels.
Market observers noted that the Naira appreciated in the parallel market, often referred to as the black market, where it traded at N1,625 per dollar. This represented a slight strengthening from the N1,630 per dollar rate recorded just the day before, indicating a gain of N5 for the local currency in that segment.
Similarly, the Naira also saw a marginal appreciation within the official channel. According to data published by the Central Bank of Nigeria (CBN) for the Nigerian Foreign Exchange Market (NFEM), the indicative exchange rate settled at N1,626 per dollar on Friday. This was a slight improvement from the N1,630 per dollar rate observed on Thursday, signifying an official appreciation of N4 for the Naira.
This small upward tick, while minimal, breaks the previous day's convergence where both markets reportedly traded at the same N1,630/$ rate. Consequently, the slight difference in appreciation levels between the two markets led to a reopening of the spread, or margin. The gap between the parallel market rate (N1,625/) and the official NFEM rate (N1,626/) widened marginally to N1 per dollar by the close of Friday's trading, although the source text calculation indicates a N4 difference based perhaps on slightly different comparison points or rounding within the day's trading data. [Note: Original text inconsistency pointed out here - N1625 vs N1626 is N1 difference, but the text stated N4 difference based on N1626 vs N1625, possibly referencing different points in time or calculation methods not fully specified]
While the appreciation is minor, currency watchers often look for consistent trends. This small gain might be viewed positively, but analysts typically emphasize the need for sustained stability or more significant gains, driven by robust foreign exchange inflows or confidence-boosting policies, to signal a true strengthening trend for the Naira. The daily fluctuations continue to be influenced by factors such as foreign exchange supply, market demand, and ongoing monetary policies implemented by the CBN aimed at achieving currency stability.
Market participants will be observing trading patterns in the upcoming week to see if the Naira can maintain or build upon this slight positive movement.