Naira Strengthens in Black Market After Cardoso’s Warning, Weakens at Official Market

The Naira experienced a positive shift in the parallel foreign exchange (FX) market on Wednesday, gaining N10 against the US dollar. A Bureau de Change operator in Wuse Zone 4, Abubakar Alhasan, reported that the Naira strengthened to N1,560 per dollar from N1,570 the previous day, marking a modest day-to-day increase in the black market.

However, the official FX market saw a different trend. According to the Central Bank of Nigeria (CBN) data, the Naira depreciated to N1,537.62 per dollar on Wednesday, a slight decline from Tuesday’s exchange rate of N1,532.39. This represents a N5.23 drop in the official market, contrasting the Naira’s improvement in the parallel market.

The fluctuation in the Naira’s value comes amid ongoing efforts by the CBN to stabilize the currency. In a recent engagement, CBN Governor Godwin Emefiele, who has been vocal about tackling currency manipulation, promised to take action against bad actors in Nigeria’s foreign exchange market.

Despite the Naira’s overall drop in the official market, the development at the black market signals some positive movement for the local currency. The divergence between the two markets reflects the ongoing volatility and challenges facing Nigeria’s foreign exchange system.

Source: daily post