- Exchange rate gap widens as volatility persists
The Naira weakened further in the parallel market on Monday, trading at ₦1,510 per dollar, down from ₦1,505 over the weekend. However, the currency showed slight improvement in the Nigerian Foreign Exchange Market (NFEM), appreciating to ₦1,499 per dollar from ₦1,500 last Friday, according to data from the Central Bank of Nigeria (CBN).
This contrasting movement has widened the gap between the official and parallel market exchange rates, increasing to ₦11 per dollar from ₦5 last weekend. Analysts attribute the persistent volatility to fluctuating forex supply, speculative trading, and ongoing market adjustments following recent policy changes by the apex bank.
Despite efforts to stabilize the Naira, the widening margin between the official and parallel markets signals continued pressure on the currency, with traders and businesses closely monitoring developments in the forex landscape.
