Exchange rate gap closes as dollar trades at N1,520.24 at official market

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On Thursday, the naira/dollar exchange rate reached N1,520 in both the official and parallel markets.

This rare convergence reflects the Central Bank of Nigeria’s (CBN) efforts to stabilize the naira and minimize discrepancies between different market segments.

Analysts suggest this alignment indicates increased transparency and efficiency in the FX market, which could boost investor confidence.

At the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira weakened by 0.50 percent, with the dollar quoted at N1,520.24 compared to N1,512.61 on Wednesday, based on data from the FMDQ Securities Exchange Limited.

The supply of dollars from willing buyers and sellers surged by 50.99 percent, reaching $173.51 million on Thursday, up from $114.91 million on Wednesday.

Intraday trading saw highs of N1,550 on Thursday, up from N1,535 on Wednesday, and lows of N1,430, compared to N1,445.48 the previous day.

The parallel market, or black market, also saw the naira steady at N1,520 per dollar. This convergence is expected to have wide-reaching effects on the economy, impacting import costs and inflation rates.

BUSINESS DAY

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