The Nigerian naira continued its upward trend against the US dollar on Monday, gaining N3.21 to trade at N1570.99 per dollar.
This represents a 3.21% increase from the N1,574.20 exchanged on Friday. However, on the black market, the naira remained unchanged at N1,600 per dollar, the same rate as last Friday.
The Central Bank of Nigeria’s (CBN) recent introduction of the Dutch Auction System has been a key factor in the naira’s appreciation. The CBN sold $815.26 million to 26 banks at N1,495 per dollar in its latest auction on Friday. This move is aimed at managing the demand for dollars and stabilizing the foreign exchange market.
The naira’s appreciation is a positive sign for the Nigerian economy, indicating increased investor confidence and a stable foreign exchange market. However, the black market rate remaining unchanged suggests that there is still a disconnect between the official and parallel markets. As the CBN continues to implement measures to manage dollar demand, it remains to be seen how the naira will perform in the coming days.
