Naira Appreciates to N1,550/$ in Parallel Market Amid Mixed Performance in Official Market

The Naira has experienced a notable appreciation, reaching N1,550 per dollar in the parallel market today, improving from N1,555 per dollar recorded last weekend. This represents a modest gain for the Nigerian currency in the informal forex market, as traders and businesses continue to adjust to global and local economic factors.

However, despite the gains in the parallel market, the Naira has seen a slight depreciation in the official foreign exchange market. According to data from the Central Bank of Nigeria (CBN), the official exchange rate for the Naira dropped marginally to N1,538 per dollar, down from N1,535 per dollar last Friday. This marks a N3 depreciation from the previous week.

Exchange Rate Gap Narrows Between Parallel Market and NAFEM

The gap between the parallel market and the NAFEM rate has narrowed significantly, now standing at N12 per dollar, down from N20 per dollar last weekend. This reduction in the margin indicates some level of stability in the foreign exchange market, as both official and parallel markets show adjustments to external pressures and internal policies.

The Naira’s performance across the parallel and official markets continues to reflect ongoing challenges faced by the Nigerian economy, including inflationary pressures, supply chain disruptions, and fluctuations in oil prices, which play a crucial role in determining Nigeria’s foreign exchange situation.