Naira Strengthens to N1,605/$1 Ahead of Sallah Holiday

Samuel Mobolaji

The naira appreciated in the parallel market on Thursday, trading at N1,605/$1 compared to N1,610/$1 on Wednesday, as demand surged ahead of the Eid el-Kabir celebrations.

This marks the second time in four days that the naira has gained ground in the black market, with the local currency beginning the week at N1,610/$1, appreciated to N1,607/$1 on Tuesday, before hitting Thursday’s N1,605/$1 rate.

The Federal Government has declared Friday, June 6, and Monday, June 9, 2025, as public holidays to mark the Eid-ul-Adha celebration.

In the official window, the naira also showed sustained gains, closing at N1,564/$1 on Wednesday, a notable improvement from N1,579/$1 on Tuesday and N1,580/$1 on Monday, based on figures published by the Central Bank of Nigeria (CBN). Thursday’s official rate was yet to be released at the time of filing this report.

Across other currencies, the naira maintained a similar strengthening trend. Against the British pound, it appreciated from N2,175/£1 on Monday to N2,160/£1 on Thursday, despite a brief dip to N2,210/£1 on Wednesday. The naira also appreciated against the euro, moving from N1,810/€1 on Monday to N1,805/€1 on Thursday after a midweek slip.

Analysts link the naira’s appreciation to increased foreign portfolio inflows and a spike in holiday-related naira demand, which has boosted dollar availability in the market. The convergence between official and parallel market rates signals improved alignment and growing investor confidence.

However, experts caution that sustaining this momentum will require consistent capital inflows and continued policy support. The trend also coincides with the June 3 deadline for the recapitalisation of Bureau De Change (BDC) operators set by the CBN.