Naira rises to N1,370/$ in parallel market as official rate slips
By Aboki Forex —
The naira appreciated to N1,370 per dollar in the parallel market yesterday, up from N1,375 on Wednesday. It weakened in the Nigerian Foreign Exchange Market, NFEM, closing at N1,329 per dollar.
Data from the Central Bank of Nigeria, CBN, showed the indicative exchange rate moved by N1 to N1,329 per dollar from N1,328 per dollar on Wednesday. The margin between the parallel and official markets narrowed to N41 per dollar from N47 per dollar on Wednesday.
Parallel market gain
The parallel market rate improved by N5, from N1,375 per dollar on Wednesday to N1,370 per dollar yesterday. That is the rate many individuals and businesses use when they cannot access official foreign exchange.
Official market slip
The NFEM rate moved in the opposite direction. The CBN data put the indicative rate at N1,329 per dollar, compared with N1,328 per dollar on Wednesday. The difference between the two markets narrowed to N41 per dollar from N47 per dollar on Wednesday.
Turnover falls
Interbank turnover in NFEM fell by 62.05 percent to $105.95 million from $279.2 million on Wednesday. The drop came as the naira traded at N1,370 per dollar in the parallel market and N1,329 per dollar in the official window.
The N41 gap between the parallel and official rates remains the spread between the two markets. It narrowed from N47 per dollar on Wednesday.