Naira falls to N1,585 in parallel market, gains in official exchange market

The naira experienced a depreciation in the parallel market, dropping to N1,585 per dollar on Tuesday from N1,550 per dollar recorded on Monday.

However, it appreciated in the official foreign exchange market, improving to N1,525 per dollar from the previous N1,538, reflecting a N13 gain.

Data from the Daily Nigerian Foreign Exchange Market (NFEM) published by the Central Bank of Nigeria (CBN) highlighted the strengthening of the naira in official markets, despite its decline in the parallel market.

Additionally, trading volume on the Nigerian Autonomous Foreign Exchange Market (NAFEM) surged by 129%, rising to $401.17 million from Monday’s $175.15 million. This sharp increase in trading activity widened the gap between the parallel market and NFEM rates to N60 per dollar, compared to N12 per dollar at the start of the week.

The contrasting trends underscore the volatility in Nigeria’s foreign exchange market, as the CBN and financial stakeholders continue efforts to stabilize the naira amidst fluctuating market dynamics.