See why the naira ended May strongly against the dollar, other currencies

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The naira closed strongly in May, reducing gaps between official and parallel exchange ratesNigeria’s external reserves rose to $49.26 billion, boosting currency confidence and investor appetiteExperts say oil price declines pose risks despite the naira’s recent stability and liquidity surge

Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.

Nigeria’s currency closed May with one of its strongest performances in recent months, as the gap between the official and parallel foreign exchange markets narrowed significantly, signalling improving stability in the country’s currency market.

At the official foreign exchange market, the naira appreciated by 0.16 per cent during the week to close at N1,373.25 per dollar.

After several months, Nigeria’s exchange rate markets have made remarkable convergence. Credit: Picture Alliance/Contributor
Source: Getty Images

In the parallel market, commonly known as the black market, the currency weakened marginally to around N1,372 per dollar, leaving both segments virtually