Naira strengthens to N1,385/$ in parallel market, official rate also gains

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The naira appreciated to N1,385 per dollar in the parallel market on Wednesday, up from N1,390 per dollar on Tuesday. In the official Nigerian Foreign Exchange Market (NFEM), the naira also gained ground, trading at N1,369 per dollar.

Official market sees N7 gain

Data from the Central Bank of Nigeria (CBN) showed that the indicative exchange rate in the NFEM fell to N1,369 per dollar from N1,376 per dollar on Tuesday. This represents a N7 appreciation for the naira in the official window.

Parallel market margin widens

The gap between the parallel market and official rates widened to N16 per dollar on Wednesday, compared with N14 per dollar on Tuesday. The spread reflects persistent demand pressures in the unofficial market despite the naira's gains.

Interbank turnover drops sharply

Interbank turnover at the NFEM fell by 66.5 percent to N90.3 million on Wednesday, down from N269.9 million the previous day. The sharp decline in trading volume suggests reduced activity in the official market as participants adopted a wait-and-see approach.

For Nigerian businesses and consumers, the naira's appreciation in both markets offers some relief, but the widening parallel market premium signals that foreign exchange liquidity remains tight. Sustained stability will depend on continued dollar inflows and CBN interventions.

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