By: Lauretta Fagbohun, Abeokuta.
The naira appreciated slightly in the parallel market on Wednesday, trading at N1,490 per dollar, compared to N1,495 per dollar on Tuesday. This improvement reflects a modest gain for the local currency against the United States dollar.
Similarly, the naira strengthened in the Nigerian Foreign Exchange Market (NFEM), where it closed at N1,469 per dollar. This marks a slight increase from the previous day’s rate, showing stability across both market segments.
Figures published by the Central Bank of Nigeria (CBN) confirmed the development. The apex bank reported that the official exchange rate declined from N1,472 to N1,469 per dollar, representing a N3 appreciation.
The improvement in the exchange rate has been attributed to better dollar inflows and moderated demand from market participants. Analysts suggest these factors contributed to easing pressure on the naira in both official and parallel markets.
Following the adjustment, the gap between the two markets narrowed. The margin between the official and parallel market rates is now N21 per dollar, down from N23 per dollar on Tuesday.
Despite the modest gain, financial experts caution that the naira remains susceptible to fluctuations driven by liquidity constraints and speculative activities. They emphasize the importance of sustained policy interventions to ensure long term stability of the currency.