Naira strengthens to N1,590/$ in parallel, official market

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The Nigerian naira showed signs of strengthening against the US dollar on Wednesday, recording gains in both the parallel market and the official Nigerian Foreign Exchange Market.

In the parallel market, the local currency appreciated to N1,590 per dollar, marking an improvement from Tuesday’s rate of N1,595 per dollar. This positive movement represented a N5 gain for the naira in the unofficial forex market.

The official market mirrored this upward trend, with data from the Central Bank of Nigeria revealing that the exchange rate improved to N1,549 per dollar in the NFEM. This marked a N1 appreciation from Tuesday’s rate of N1,550 per dollar.

The simultaneous strengthening in both markets led to a narrowing of the gap between official and parallel market rates. The margin decreased to N41 per dollar on Wednesday, down from N45 per dollar recorded the previous day.

This development comes as the CBN continues its efforts to stabilize the foreign exchange market and reduce the persistent gap between official and parallel market rates. The narrowing spread suggests some success in these stabilization measures, though significant differences remain between the two exchange rates.

The CBN has maintained its intervention in the forex market as part of broader economic reforms aimed at achieving exchange rate stability and attracting foreign investment.

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