The Nigerian naira experienced a significant shift in value, as it traded at 663.04/dollar at the end of Friday's business hours. This followed the Central Bank of Nigeria's decision to allow the national currency to float against the dollar and other global currencies. As a result of this policy change, the naira demonstrated an impressive appreciation of approximately 5.9% within a span of 24 hours, compared to the previous day's closing rate of N702.19/dollar.

Based on information provided by the FMDQ Securities Exchange, the Nigerian naira reached a rate of N664.04/dollar by the conclusion of trading at the I&E Window on Wednesday, and N702.19/dollar on Thursday. This followed the directive from the Central Bank of Nigeria (CBN) to Deposit Money Banks, instructing them to remove the rate cap on the naira within the official Investors' and Exporters' Windows of the foreign exchange market.

The CBN's decision to allow the currency to float was met with praise by the organized private sector and economists, who acknowledged that this step would lead to the unification of the country's multiple exchange rates and provide a boost to the foreign exchange market.

This new development grants buyers and sellers of foreign currency in the official FX markets the freedom to quote rates that align with their preferences, unlike the previous practice where rates were dictated by the Central Bank of Nigeria (CBN).

While the official exchange rate experienced appreciation, the parallel market witnessed a depreciation, starting at N750/dollar and closing at N760/dollar on Friday.

However, in a recent forecast, the renowned global investment bank, Morgan Stanley, has projected that the naira is expected to appreciate in value against the parallel market rate.