The Nigerian currency, the naira, has demonstrated stability against the United States Dollar in both the official foreign exchange market (NFEM) and the black market. Data from the last trading day of the week indicated an unchanged exchange rate of N1,599 against the dollar in the official market, consistent with the rate quoted by the Central Bank of Nigeria (CBN) on the preceding Thursday.

Compared to the previous week ending May 9th, where the closing rate was N1,607 per dollar, the naira appreciated by N8 after five days of trading in the official market. According to CBN data from Friday, May 17th, the bidding rates for the dollar ranged from N1,597 to N1,603. For individuals seeking dollars from banks for Personal Travel Allowance (PTA), Business Travel Allowance (BTA), school fees, or medical expenses, transactions are processed at the NAFEM rate, which on Friday, featured a bidding rate of N1,599 and an offering rate of N1,603.

The naira also showed positive movement against other major currencies. CBN data revealed that the naira appreciated against the British Pound Sterling, strengthening to N2,123.42/£1 from Thursday’s rate of N2,126.47/£1. Similarly, it gained ground against the Euro, improving to N1,788.00/€1 compared to N1,791.25/€1 on Thursday. The values of the naira against other currencies were as follows: Pound Sterling at N2,123.42, Euro at N1,788.01, Swiss Franc at N1,906.87, Japanese Yen at N10.97, CFA Franc at N2.73, Saudi Riyal at N426.23, Danish Krone at N239.65, Chinese Yuan (Renminbi) at N221.77, and South African Rand at N88.33.

In the black market, the naira demonstrated a similar trend. According to a forex trader, the naira appreciated against the dollar, trading at N1,620/$1 compared to Thursday’s rate of N1,630/$1. It also strengthened against the Euro, improving to N1,775/€1 from N1,795/€1, and gained against the Pound Sterling, rising to N2,130/£1 from N2,155/£1.

In related news, the US House of Representatives is considering a 5% tax on all remittances sent abroad. This proposal could potentially impact Nigeria’s foreign exchange inflows through diaspora remittances if implemented.