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The naira/dollar exchange rate in Nigeria converged at N1,520 across both official and parallel markets. This significant alignment, driven by the Central Bank of Nigeria, aims to stabilize the naira and enhance market transparency. The change is expected to impact import costs, inflation rates, and overall investor confidence.

The Nigerian foreign exchange (FX) market saw a significant development on Thursday, as the naira/dollar exchange rate converged at N1,520 in both the official and parallel markets. This rare alignment reflects the Central Bank of Nigeria's (CBN) ongoing efforts to stabilize the naira and minimize discrepancies between various market segments.

Analysts suggest that this convergence may signal improved transparency and efficiency in the FX market, potentially enhancing investor confidence. The closing of the exchange rate gap is expected to have widespread implications for the economy, affecting import costs and inflation rates.

Data from the FMDQ Securities Exchange Limited revealed that the naira lost 0.50 percent at the Nigerian Autonomous Foreign Exchange Market (NAFEM), with the dollar quoted at N1,520.24 compared to N1,512.61 the previous day. Dollar supply by willing buyers and sellers increased by 50.99 percent to $173.51 million on Thursday, up from $114.91 million on Wednesday.

Intraday trading saw the naira peak at N1,550 on Thursday, slightly higher than Wednesday's peak of N1,535. The lowest rate was N1,430 on Thursday, compared to N1,445.48 on Wednesday. Meanwhile, the parallel market, commonly known as the black market, saw the naira stabilize at N1,520 per dollar.

Source: BusinessDay