The Naira experienced a mixed performance in the foreign exchange market on Wednesday, as it depreciated in the parallel market but appreciated in the official Nigerian Foreign Exchange Market (NFEM).
In the parallel market, the Naira fell to N1,570 per dollar from N1,560 per dollar on Tuesday. This depreciation reflected a slight weakening of the local currency, which has been fluctuating in recent days due to varying market forces.
Conversely, the Naira appreciated in the Nigerian Foreign Exchange Market, where it gained 10 kobo to settle at N1,513 per dollar. The currency had closed at N1,513.1 per dollar on Tuesday, according to data published by the Central Bank of Nigeria (CBN), showing a modest recovery in the official market.
As a result, the margin between the parallel market and NFEM exchange rates has widened, rising to N57 per dollar from N46.9 per dollar on Tuesday. This growing gap highlights the ongoing disparity between the official and unofficial markets for foreign exchange, a trend that has raised concerns among market watchers and policymakers.
The Central Bank of Nigeria continues to monitor exchange rate movements while the market awaits further policy actions to stabilize the Naira and reduce the margin between the two exchange rate markets.
