The Naira depreciated to N1,570 per dollar in the parallel market yesterday. Last weekend, it was at N1,545 per dollar. This drop signals increased pressure on the local currency in unofficial markets.
In contrast, the Nigerian Foreign Exchange Market (NFEM) saw the Naira appreciate. The rate improved to N1,528 per dollar. Data from the Central Bank of Nigeria (CBN) showed that the indicative exchange rate in the NFEM fell from N1,542 per dollar last weekend to N1,528 per dollar today. This change represents a N14 appreciation for the Naira in the formal market.
Due to these changes, the gap between the parallel market rate and the NFEM rate has widened significantly. The margin increased from N3 per dollar last Friday to N42 per dollar today. This widening difference indicates a growing divergence between the official exchange rate and the rate in the parallel market.
Experts believe that this gap may affect importers, exporters, and ordinary citizens who rely on the informal market. A widening margin can lead to uncertainty and may have an impact on the economy if it continues to expand.
The CBN continues to monitor the situation closely and is expected to implement measures to address the discrepancies between the parallel and official markets.
