The Naira continued to experience fluctuations in the foreign exchange market, as it depreciated to ₦1,510 per dollar in the parallel market on Monday, down from ₦1,505 per dollar recorded last weekend.
However, data from the Central Bank of Nigeria (CBN) showed a marginal appreciation in the official Nigerian Foreign Exchange Market (NFEM), where the indicative exchange rate strengthened to ₦1,499 per dollar, gaining ₦1 from ₦1,500/$ recorded last Friday.
Widening Gap Between Official and Parallel Market Rates
The latest figures indicate a further widening of the exchange rate gap between the parallel market and the CBN-regulated market. The difference now stands at ₦11 per dollar, compared to the ₦5 margin recorded last weekend.
The continued pressure on the Naira has been attributed to factors such as forex scarcity, increased demand for dollars, and speculation in the parallel market. Meanwhile, the CBN’s intervention policies aimed at stabilizing the currency have led to slight improvements in the official market.
Market Analysts Weigh In
Financial experts have noted that the CBN’s recent reforms, including efforts to clear forex backlogs and boost dollar supply, may gradually strengthen the Naira in the long run. However, they caution that persistent demand pressure in the parallel market could keep the exchange rate volatile in the near term.
As of the time of filing this report, The Bureau Newspaper observed that forex traders remain uncertain about the Naira’s short-term trajectory, as both markets continue to react to economic developments and monetary policies.