Official exchange rate sees slight depreciation as gap between markets narrows.
LAGOS — The Nigerian naira continued its upward trend in the parallel market on Wednesday, strengthening to N1,575 per dollar from N1,585 earlier in the week. However, the currency saw a slight decline in the official Nigerian Foreign Exchange Market (NFEM), where it weakened to N1,535/$ from N1,533/$ on Monday.
According to data released by the Central Bank of Nigeria (CBN), the indicative exchange rate in the official market dipped by N2, while the parallel market recorded a N10 gain. This narrowed the gap between the two rates to N40 per dollar, down from N52 earlier in the week.
The mixed performance highlights ongoing fluctuations in Nigeria’s foreign exchange landscape, as the CBN continues efforts to stabilize the currency. Analysts attribute the parallel market’s improvement to reduced speculative demand and increased dollar liquidity from recent policy measures.
Market watchers remain cautious, however, as volatility persists. The narrowing spread between official and unofficial rates suggests some convergence, but sustained stability will depend on further interventions and economic reforms.
