Naira gains against dollar in parallel market, slightly depreciates in official market

The Nigerian Naira appreciated in the parallel market, trading at N1,550 per dollar on Monday, up from N1,555 per dollar last weekend.

However, in the official foreign exchange market, the currency experienced a marginal depreciation, settling at N1,538 per dollar compared to N1,535 per dollar recorded last Friday.

According to data from the Daily Nigerian Foreign Exchange Market (NFEM), published by the Central Bank of Nigeria (CBN), this represents a depreciation of N3 in the official market.

Despite the decline, the gap between the parallel market rate and the official rate has narrowed, reducing to N12 per dollar from N20 per dollar observed last weekend.

The Naira’s mixed performance reflects the ongoing volatility in Nigeria’s forex markets, driven by supply-demand dynamics and regulatory interventions.

Analysts suggest that further efforts by the CBN to stabilize the exchange rate could help reduce market disparities and strengthen the Naira’s overall position.