The naira recorded mixed movements on Monday, trading at N1,465 per dollar in the parallel market, up from N1,456 per dollar last Friday, while gaining slightly in the official Nigerian Foreign Exchange Market o N1,437.5 per dollar, compared with N1,438.5 per dollar over the weekend.
The contrasting trends highlight growing pressures in the parallel market alongside relative stability in the official market.
Data released by the Central Bank of Nigeria confirmed the modest N1 appreciation in the official market, reflecting the bank’s continued interventions to manage exchange rates and ensure the availability of forex for critical sectors, including imports of essential goods and services.
The widening gap between the parallel and official rates has drawn concern from economists and traders alike.
The margin, which stood at N17.5 per dollar last Friday, has now widened to N27.5 per dollar, indicating persistent arbitrage opportunities and signaling potential challenges for businesses reliant on foreign exchange.
Experts attribute the naira’s decline in the parallel market to high demand for dollars from importers, travel-related needs, and speculative activities.
Meanwhile, the modest appreciation in the official market suggests that CBN interventions continue to offer some buffer against sharp currency fluctuations.
Despite the relative stability in the official market, the overall sentiment remains cautious.
Traders and investors are closely watching global oil prices, foreign investment inflows, and domestic policy measures, all of which play a key role in shaping the naira’s trajectory and the broader forex market.
