This represented a significant appreciation of approximately 5.9% within a span of 24 hours, compared to the N702.19/dollar rate recorded on Thursday.

The Central Bank of Nigeria's decision to float the national currency against the US dollar and other global currencies contributed to this positive development. The move was welcomed by the organized private sector and economists, who believe it will help unify Nigeria's multiple exchange rates and strengthen the foreign exchange market.

Under the new system, participants in the official foreign exchange markets are now able to quote rates they deem suitable, marking a departure from the previous practice of rates being dictated by the Central Bank. However, while the official rate experienced an appreciation, the parallel market witnessed a depreciation, with rates starting at N750/dollar and closing at N760/dollar on Friday.

Morgan Stanley, a global investment bank, predicts that the Naira is likely to appreciate further in the near term, particularly at the parallel market rate. The bank anticipates a convergence between the Investors' and Exporters' (I&E) rate and the parallel market rate as more financial flows are redirected through formal banking channels.

Additionally, JP Morgan expressed a positive outlook on Nigeria's sovereign credit, stating that the official Naira exchange rate to the US dollar is expected to stabilize in the coming months. However, the bank also foresees initial pressure leading to an increase in the local currency's value on the black market following a monetary policy reset.

The International Monetary Fund (IMF) voiced its support for the unified exchange rate and pledged to assist Nigeria in implementing foreign exchange reforms. Ari Aisen, the IMF's Resident Representative for Nigeria, emphasized the organization's commitment to aiding the country in this regard.