BT ANTHONIA EMMANUEL
The Nigerian naira appreciated in the parallel market on Tuesday, trading at ₦1,620 per US dollar, up from ₦1,625 the previous day. This marks a ₦5 gain, reflecting a modest improvement in the local currency’s value.
Conversely, in the Nigerian Foreign Exchange Market (NFEM), the naira experienced a slight depreciation, settling at ₦1,598.69 per dollar compared to ₦1,597 on Monday. This indicates a marginal decline of ₦1.69 in the official market.
As a result, the disparity between the parallel market and the NFEM rates narrowed to ₦21.31, down from ₦28 the previous day. This convergence suggests a potential stabilization in the foreign exchange landscape, possibly influenced by market dynamics and regulatory interventions.
Market analysts attribute the naira’s appreciation in the parallel market to a combination of factors, including increased dollar liquidity and reduced demand pressures. Meanwhile, the slight depreciation in the official market underscores ongoing challenges in balancing supply and demand for foreign currency.
The Central Bank of Nigeria continues to monitor the forex markets closely, aiming to implement policies that foster stability and confidence in the nation’s currency.
