The naira appreciated to N1,575/$ in the parallel market but depreciated to N1,535/$ in the official forex market, narrowing the rate gap to N40/$. Analysts attribute fluctuations to forex reforms and market demand, urging policy measures for stability.
The Naira experienced mixed movements in the foreign exchange market, strengthening in the parallel market while depreciating in the official market. On Tuesday, the currency appreciated to N1,575 per dollar in the parallel market, improving from N1,585/$ recorded on Monday.
However, in the Nigerian Foreign Exchange Market (NFEM), the Naira weakened slightly, trading at N1,535 per dollar, down from N1,533/$ the previous day. Data from the Central Bank of Nigeria (CBN) confirmed the dip, reflecting ongoing market fluctuations influenced by forex demand and policy adjustments.
As a result, the difference between the parallel market and the official exchange rate narrowed to N40 per dollar, compared to N52 per dollar at the start of the week. Analysts suggest that the volatility in exchange rates highlights the impact of monetary policies and external economic factors affecting liquidity in Nigeria’s forex market.
The latest trends in the foreign exchange market have drawn attention to the CBN's reforms, as stakeholders urge authorities to implement measures that promote long-term currency stability.
