By Ayomide Otitoju
The Nigerian naira extended its rally against the US dollar on Tuesday, sharply narrowing the exchange rate gap between the official and parallel markets.
The currency’s performance came as the US dollar index weakened globally, following expectations that the Federal Reserve may cut interest rates after a disappointing US jobs report.
In Nigeria, reduced demand for foreign exchange by companies and other eligible users has supported the naira’s uptrend. Market analysts also noted that the growing use of naira debit card alternatives for international transactions has helped ease pressure on the currency in the unofficial market, where the dollar traded at ₦1,515, according to checks by MarketForces Africa.
At the official window, data from the Central Bank of Nigeria (CBN) showed the naira closing at ₦1,506.08 per dollar on Tuesday, compared with ₦1,506.84 the previous day, after reaching an intraday high of ₦1,509.50.
The CBN’s foreign exchange update indicated that the naira appreciated by 0.05%, supported by strong local demand and reduced speculative activity.
