Naira strengthens for third day amid CBN auction

The naira has appreciated for three consecutive days against the dollar at the official foreign exchange market, following the Central Bank of Nigeria’s latest FX Retail Dutch Auction System. According to FMDQ data, the naira strengthened to N1,596.52 per dollar on Wednesday, up from N1,601 on Tuesday, marking a gain of N4.48.

Conversely, in the black market, the naira weakened to N1,620 per dollar on Wednesday, down from N1,607 the previous day, reflecting a loss of N13.

This divergence highlights that while the naira gained N4.48 at the official market, it lost N13 in the black market. The CBN recently sold $876.26 million at N1,495 per dollar through its retail Dutch Auction System to manage the rising demand for dollars.