The Naira experienced contrasting movements in the foreign exchange market yesterday. In the parallel market, it depreciated to N1,668 per dollar, a significant drop from N1,600 per dollar recorded on Wednesday.
Conversely, the Naira showed marginal gains in the official foreign exchange market, appreciating to N1,534.6 per dollar from N1,545 per dollar the previous day. This represents a N10.4 improvement, according to data from the Daily Nigerian Foreign Exchange Market (NFEM), published by the Central Bank of Nigeria (CBN).
Widening Exchange Rate Margins
The contrasting trends have widened the margin between the parallel market and the official NFEM rate. The gap increased to N133.4 per dollar, up from N55 per dollar on Wednesday, reflecting growing disparities between the two markets.
The volatility in the foreign exchange market underscores ongoing pressures on the Naira, highlighting the need for policy measures to address demand and supply imbalances.
This financial dynamic continues to affect economic activities, influencing trade and investment decisions across the country.
