The Nigerian naira recorded significant appreciation against the US dollar across both official and parallel foreign exchange markets on Wednesday, according to data from the Central Bank of Nigeria (CBN).

In the official market, the naira strengthened to N1,584.49 against the dollar, improving from Tuesday's rate of N1,590.45. This represents a gain of N5.96 on a day-to-day basis.

Similarly, the parallel market (commonly known as the black market) saw the naira appreciate by N3, trading at N1,625 per dollar on Wednesday compared to N1,628 on Tuesday.

This marks the first time this week that the naira has strengthened across foreign exchange markets, following a period of depreciation. Just the previous day, the naira had recorded a decline in the black market.

The Governor of the Central Bank of Nigeria, Olayemi Cardoso, speaking at the conclusion of the 300th Monetary Policy meeting on Tuesday, expressed confidence in the stability of the country's currency. He stated that the naira now enjoys a more competitive payment system across the West African region.

Financial analysts are closely monitoring these developments as they may indicate a positive trend for the Nigerian currency, which has faced significant challenges in recent months.

The narrowing gap between the official and parallel market rates is seen as a positive indicator of increasing stability in Nigeria's foreign exchange market, potentially boosting investor confidence in the country's economy.