The Nigerian naira appreciated on Wednesday in both the parallel and official foreign exchange markets. In the parallel market, the naira gained five naira, moving from N1,620 per dollar on Tuesday to N1,615 per dollar. This continued a recent trend of modest gains against the U.S. dollar.
In the Nigerian Foreign Exchange Market (NFEM), the naira also experienced an upturn. The Central Bank of Nigeria (CBN) reported that the official exchange rate strengthened to N1,583 per dollar, up from N1,588.5 recorded the previous day. This represents a N5.5 appreciation in a single day, suggesting improved confidence or better liquidity conditions.
With both markets showing naira appreciation, the gap between the official and parallel market rates slightly widened. The difference increased from N31.5 to N32 per dollar, reflecting ongoing disparities in supply and demand dynamics between the two markets.
These shifts in exchange rates come amid broader economic concerns and policy responses from the Central Bank. The monetary authority has been implementing measures to stabilize the naira, including interest rate adjustments and forex interventions. However, the sustainability of these gains remains uncertain in the face of inflationary pressure and other macroeconomic challenges.
In related developments, recent headlines in Nigeria’s economic news include a 49% surge in debt servicing payments, conflicting opinions on the CBN’s benchmark interest rate of 27.5%, and regional variations in petrol prices. These issues continue to shape Nigeria’s complex economic landscape as stakeholders monitor both local and international developments.
Source: Vanguard