The naira yesterday slipped further in the parallel market, trading at N1,540 per dollar, compared to N1,537 per dollar on Tuesday. However, it recorded gains in the Nigerian Foreign Exchange Market (NFEM), where it appreciated to N1,522 per dollar.
Data released by the Central Bank of Nigeria (CBN) confirmed the movement, showing that the official exchange rate closed at N1,522 per dollar, stronger than N1,525.45 per dollar recorded on Tuesday. This reflects an appreciation of N3.45 for the domestic currency
A CBN official, who spoke with The PUNCH on condition of anonymity, explained the dynamics:
“The official window reflects more liquidity inflows from exporters and investors, which is why the naira firmed up slightly. However, the pressure in the parallel market remains due to persistent demand for cash dollars.”
As a result of the divergent trends, the margin between the parallel market and the NFEM rate widened to N18 per dollar, up from N11.55 per dollar recorded on Tuesday.
Market analysts warned that the widening gap could encourage speculative trading.
“The spread between the official and parallel market is once again becoming noticeable. If this continues, it may fuel arbitrage activities,” one Lagos-based foreign exchange trader said
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