by Atafo Igbinedion
The Naira strengthened against the U.S. dollar in the parallel market on Tuesday, trading at ₦1,565 per dollar compared to ₦1,570 on Monday. However, it weakened in the Nigerian Foreign Exchange Market (NFEM), closing at ₦1,537 per dollar, down from ₦1,528 the previous day.
According to data from the Central Bank of Nigeria (CBN), the indicative exchange rate rose by ₦9, reflecting the Naira’s depreciation in the official market.
A currency trader in Lagos, Yusuf Adekunle, confirmed the parallel market movement, saying, “We saw a slight improvement today as demand eased a bit, but the market remains volatile.”
Meanwhile, an analyst at a financial consultancy firm, Adaobi Eze, explained the NFEM depreciation, noting, “This fluctuation shows that while the Naira is finding some support in the street market, there is still pressure on the official window due to demand from businesses and investors.”
With these movements, the gap between the parallel market and NFEM rates narrowed to ₦37 per dollar, down from ₦42 on Monday. Experts suggest continued monitoring of market dynamics, as policies and global factors influence exchange rate trends.
