Naira weakens to N1,328.50/$ at official market, appreciates to N1,385/$ at black market

The naira depreciated against the dollar at the official foreign exchange market on Wednesday, closing at N1,328.50 per dollar. That was weaker than N1,327.78 exchanged on Tuesday, a day-to-day fall of N0.72.

The movement was mixed across markets. At the black market, the naira extended its appreciation to N1,385 per dollar from N1,389 per dollar the previous day. The parallel market rate strengthened even as the official rate slipped.

External reserves at $54.81 billion

The mixed movements came as the country's external reserves stood at $54.81 billion, according to data from the apex bank. The reserves figure remains a key buffer for the apex bank in its management of the foreign exchange market.

Official and parallel markets diverge

Wednesday's session saw the official market and the black market move in opposite directions. The official rate edged down by N0.72, while the black market rate moved from N1,389 to N1,385. That followed Tuesday, when the naira appreciated against the dollar across both the official and parallel foreign exchange markets.

What it means

For Nigerian businesses and consumers, the gap between the official and black market rates remains wide. Importers and travellers watching the parallel market will note that the naira gained there on Wednesday. The official rate remains the reference for many formal transactions and government dollar flows.