The naira strengthened to a two-year high of N1,347.78 per dollar at the official foreign exchange market on Monday, Febuaury 16.
The rise is thanks to the improved liquidity and expectations of new trading guidelines for Bureau De Change (BDC) operators from the Central Bank of Nigeria (CBN).
Data published by the apex bank showed that the local currency appreciated by N7.64, representing a 0.57% gain, compared with N1,355.42 recorded on Friday at the Nigerian Foreign Exchange Market (NFEM)
The latest rate means dollar has crashed by over N83 in recent weeks when compared to N1,430 it opened the year The currency also recorded gains against other major currencies in the official market.
It appreciated by N5.41 against the Pound Sterling to trade at N1,839.18/£1 from N1,844.59/£1 last Friday. Against the euro, the naira gained N9.78 to close at N1,598.06/€1 compared with N1,607.93/€1 in the preceding session
However, at the forex counter of Guaranty Trust Bank (GTBank), the naira weakened slightly by N2 to N1,367 per dollar from N1,365 previously, BusinessDay reports.
In the parallel market, also known as the black market, the currency traded around N1,390 per dollar on Monday morning, although some traders quoted it unchanged at N1,420 per dollar later in the day.
The spread between the official and parallel markets narrowed significantly to about 2.5 percent, or roughly N35, compared with more than 6%, or N92, recorded last week.
Latest exchange rate snapshot
CFA: N2.45
Yuan/Renminbi: N195.07
Danish Krone: N213.88
Euro: N1,598.06
Yen: N8.79
Riyal: N359.38
South African Rand: N84.51
Swiss Franc: N1,749.68
Pound Sterling: N1,839.18
US Dollar: N1,347.78
UAE Dirham: N366.88
WAUA: N1,867.47
