The Nigerian naira recorded a modest gain in the parallel market, exchanging at N1,382 to the dollar — an improvement from the N1,391 rate posted the previous day as currency traders responded to shifting market conditions.
The appreciation in the parallel market, however, stood in contrast to the naira’s performance at the Nigerian Foreign Exchange Market (NFEM), where the currency depreciated to N1,361 per dollar.
Data from the Central Bank of Nigeria (CBN) showed the indicative exchange rate rising to N1,361 per dollar from N1,359.50 per dollar recorded the previous day, reflecting a N1.50 depreciation.
As a result of the divergent movement across both windows, the margin between the parallel and official markets narrowed to N21 per dollar, down from N31.50 per dollar recorded on Wednesday.
The narrowing spread between the two markets is widely regarded by analysts as a positive signal, suggesting a gradual convergence between Nigeria’s official and black market exchange rates a key objective of the CBN’s ongoing foreign exchange reforms.
Traders expect the naira to remain within its current range in the short term, barring any significant shifts in dollar supply or policy direction, as the narrowing spread may signal gradual progress toward exchange rate convergence.
Demand at the official window continues to be driven primarily by corporate entities meeting trade obligations and financing essential imports, even as the apex bank maintains interventions aimed at improving liquidity and ensuring smoother price discovery in the market.
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