Naira Gains to N1,380/$ in Parallel Market as Official Rate Slips to N1,329.5
By Aboki Forex —
The naira appreciated to N1,380 per dollar in the parallel market yesterday, from N1,390 per dollar on Monday. At the official Nigerian Foreign Exchange Market, NFEM, the currency moved the other way, depreciating to N1,329.5 per dollar.
Parallel market
The parallel market rate strengthened by N10, taking the naira to N1,380 per dollar yesterday. The previous rate was N1,390 per dollar on Monday. The movement offered some relief to traders who track the cash market, where the dollar is often priced higher than the official window.
Official market and CBN data
Data from the Central Bank of Nigeria, CBN, showed that the indicative exchange rate for the naira rose to N1,329.5 per dollar from N1,329 per dollar on Monday. That represented a 50 kobo depreciation for the local currency at the NFEM. The naira had closed Monday at N1,329 per dollar in the official market.
Margin narrows
The margin between the parallel market and the official market narrowed to N50.5 per dollar. It stood at N61 per dollar on Monday. The smaller gap means the two rates moved closer, reducing the spread between the parallel market and the CBN's indicative NFEM rate.
Turnover rises
The value of interbank turnover in NFEM grew by 177.6 percent to $262.12 million from $94.4 million on Monday. The sharp increase in turnover came as the official rate edged up by 50 kobo.
For Nigerian businesses and consumers, the N50.5 margin is the key number to watch. A narrower spread reduces the difference between the parallel market rate and the official NFEM rate, though the parallel market remains the reference for many dollar transactions outside the formal banking window.