The naira appreciated to N1,565/$ in the parallel market, while it weakened to N1,537/$ in the official market, narrowing the gap to N37/$. Analysts link the fluctuations to CBN policies and forex supply dynamics, as businesses and investors closely monitor the currency’s stability and future trends. The Nigerian naira gained ground in the parallel market on Tuesday, trading at N1,565 per dollar, up from N1,570/$ recorded the previous day. However, in the Nigerian Foreign Exchange Market (NFEM), the currency weakened slightly, settling at N1,537 per dollar, reflecting a N9 depreciation from Monday’s rate of N1,528/$.
Data from the Central Bank of Nigeria (CBN) indicated a narrowing gap between the parallel and official exchange rates. The difference between the two markets shrank to N37 per dollar, compared to N42 at the start of the week. Analysts suggest this could indicate increased forex supply or policy interventions aimed at stabilizing the local currency.
Market watchers attribute the fluctuation to CBN’s ongoing reforms, shifts in dollar liquidity, and speculative trading activities. Some traders believe that the naira’s recent appreciation in the parallel market could be temporary, depending on future government policies and forex inflows.
Meanwhile, businesses and importers continue to monitor the exchange rate trends, as currency volatility directly impacts inflation, purchasing power, and economic stability.
