Following recent market reforms and interventions by the Central Bank of Nigeria (CBN), there are indications of improvement in the exchange rate situation, with the disparity between the Nigerian Autonomous Foreign Exchange Market (NAFEM) and the parallel market rate narrowing down to 0.4 per cent.
Data from FMDQ’s website reveals that the naira depreciated by 4.9 per cent week-on-week (w/w) to N1,627.40/$1 at the official market rate, while it declined by 5.3 per cent w/w against the dollar to N1,600.00/$1 at the parallel market.
The reduction in the exchange rate disparity signals a more stable foreign exchange environment, with this trend persisting for the second consecutive week. The 0.4 per cent figure is notably lower than the 5 per cent typically considered as an acceptable premium between the official and parallel market rates. These developments suggest positive outcomes resulting from the CBN’s interventions and market reforms.
Source: The Sun