The Nigerian Naira showed a slight improvement in the parallel market on Monday, strengthening to N1,655 per dollar. This is an increase from N1,665 per dollar recorded just last weekend.
Despite the gain in the unofficial market, the Naira faced a decline in the official foreign exchange market, where its value fell to N1,550 per dollar, from N1,544.5 per dollar last week.
Data from the Central Bank of Nigeria (CBN) revealed that the exchange rate in the official market weakened by N5.5, highlighting the pressure on the national currency.
This depreciation marks a continuation of the Naira’s struggle to maintain stability in the official market despite a stronger performance in the parallel market.
The Central Bank of Nigeria’s data also pointed to a narrowing gap between the exchange rates in the parallel market and the official foreign exchange market.
As of Monday, the difference stood at N105 per dollar, compared to a wider margin of N120.5 per dollar observed last Friday. This shrinking gap indicates that the two markets are gradually aligning, though the official market still shows signs of weakness.
While the Naira’s strength in the parallel market is seen as a positive sign for those trading in the informal sector, it also reflects ongoing challenges in the official market. The Central Bank has been under pressure to stabilize the national currency amidst fluctuating exchange rates.
