The naira experienced a decline in value on the parallel market on Tuesday, trading at N1,620 to the dollar, down from N1,610 recorded on Monday.
However, in the Nigerian Foreign Exchange Market, the local currency showed signs of recovery, appreciating to N1,579 per dollar.
This continued downward trend in the parallel market highlights ongoing pressure on the naira, which slipped by N10 from its previous rate of N1,610 to settle at N1,620 against the dollar.
This marks a continued depreciation trend in the unofficial market, where demand for dollars remains high due to limited access to the official window.
Conversely, the official Nigerian Foreign Exchange Market witnessed a slight improvement in the local currency’s value.
The naira appreciated to N1,579 per dollar, according to data from the Central Bank of Nigeria. This is a marginal gain from the N1,580 per dollar recorded at the close of trading on Monday, reflecting a N1 appreciation in the official exchange rate.
CBN data confirms the change, showing the naira’s performance in the NFEM with the exchange rate adjusting from N1,580 to N1,579 per dollar.
This movement, although minimal, suggests the central bank’s continued efforts to stabilize the official forex market through monetary interventions and improved dollar supply to critical sectors of the economy.
However, the divergence between the official and parallel market rates has continued to widen, raising concerns among analysts and stakeholders about arbitrage and speculative activities.
As of Tuesday, the gap between the two markets stood at N41 per dollar, up from N30 per dollar the previous day.
This development points to increasing pressure on the naira in the unofficial market and underscores persistent challenges in aligning both markets.
Market watchers believe that closing the gap between the NFEM and the parallel market is crucial for restoring investor confidence and ensuring stability in the foreign exchange ecosystem.
They are calling on the CBN to intensify reforms aimed at improving liquidity, transparency, and accessibility within the official forex channels.
