The Nigerian naira began the week on an impressive note, recording substantial appreciation against the US dollar across various foreign exchange markets on Monday.

In the parallel market, commonly known as the black market, the naira strengthened significantly, trading at ₦1,615 per dollar on Monday, compared to ₦1,628 recorded last Friday. This represents a gain of ₦13 against the dollar on a day-to-day basis.

"We buy at ₦1,605 per dollar and sell at ₦1,615," Abubakar Alhasan, a Bureau de Change operator in Wuse Zone 4, Abuja, told reporters on Monday.

The official market also witnessed positive movement as data from the Central Bank of Nigeria showed the naira gained ₦4.57, closing at ₦1,581.58 on Monday from ₦1,586.15 exchanged on Friday.

Factors Behind the Appreciation

Market sources attributed this positive development to two key factors: a surge in foreign portfolio investments and the upcoming Eid el-Kabir holidays in Nigeria scheduled for June 6 and 9, 2025.

The appreciation marks a significant turnaround from the naira's performance at the close of last week, showing renewed strength in Nigeria's currency amid ongoing economic reforms.

This development comes as welcome news for businesses and consumers who have been grappling with the effects of currency volatility on prices of goods and services in recent months.

Financial analysts are watching closely to see if this trend will continue in the coming weeks, especially after the Eid holidays, as sustained appreciation could signal improving investor confidence in the Nigerian economy.