Naira appreciates amid Sallah celebrations

Over the Sallah holiday, the Naira experienced a modest appreciation in value, exchanging at a rate of N1480 to the US dollar in the parallel foreign exchange market, also referred to as the black market.

According to Dayyabu Ashiru, a bureau de change operator based in Abuja’s Wuse Zone 4, in an interview on Tuesday, the Naira’s slight appreciation was confirmed.

Ashiru revealed that the demand for foreign exchange had remained steady during the Eid-el-Kabir holiday period. “We buy at N1,460 against the dollar and sell at N1,480. This is an appreciation compared to the N1,490 to N1,500 it traded last week Friday. I think demand for FX dropped due to the Sallah celebration,” he said.

This development coincides with the Nigerian government’s declaration of Monday and Tuesday as public holidays to mark the Sallah celebration. Official foreign exchange trading is set to resume on Wednesday.

According to FMDQ data from last Friday, the Naira closed at N1482.72 against the US dollar in the official foreign exchange market, highlighting the ongoing volatility in the currency’s value that has been a source of concern for financial experts and market analysts.

The Director of the Centre for the Promotion of Private Enterprise, Muda Yusuf, has identified the volatility of the Naira against the US dollar as a key driver of Nigeria’s escalating inflation, which peaked at 33.95 percent in May 2024.