Nigeria's currency, the naira, continued its upward trajectory against the dollar across both official and parallel foreign exchange markets on Tuesday.

According to data from the Central Bank of Nigeria (CBN), the naira strengthened to N1,579.27 against the dollar on Tuesday, improving from Monday's rate of N1,581.58. This represents an appreciation of N2.31 in the official market.

The parallel market (commonly known as the black market) also recorded significant gains, with the naira appreciating by N15 to trade at N1,600 per dollar on Tuesday, compared to N1,615 exchanged the previous day.

BDC Recapitalization Deadline Impact

The latest appreciation coincides with the expiration of the CBN's deadline for Bureau De Change (BDC) operators' recapitalization on Tuesday, June 3, 2025. This regulatory measure appears to be influencing market dynamics positively.

BenriNews reports that despite occasional fluctuations, the naira has maintained relative stability in the foreign exchange markets over the past six months. The currency had also recorded significant gains across FX markets on Monday, indicating a continuing trend of appreciation.

Outlook for Nigeria's Currency

The consistent appreciation of the naira against the dollar in both official and parallel markets suggests improving confidence in Nigeria's currency. Market analysts attribute this positive trend to the CBN's recent monetary policies and regulatory measures aimed at stabilizing the foreign exchange market.

If this trend continues, it could potentially ease inflationary pressures on imported goods and services, ultimately benefiting Nigerian consumers and businesses that rely on foreign inputs for their operations.