On Thursday, the foreign exchange (FX) market witnessed a significant development as the naira/dollar rate reached N1,520 in both the official and parallel markets.
This rare convergence marks a pivotal moment, highlighting the Central Bank of Nigeria’s (CBN) sustained efforts to stabilize the naira and reduce discrepancies between different market segments. Analysts suggest that this alignment may indicate enhanced transparency and efficiency in the FX market, potentially boosting investor confidence.
The closing of the exchange rate gap is anticipated to have broad implications for the economy, affecting everything from import costs to inflation rates.
In the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira depreciated by 0.50 percent, with the dollar quoted at N1,520.24 compared to N1,512.61 on Wednesday, according to data from FMDQ Securities Exchange Limited.
The volume of dollars supplied by willing buyers and sellers surged by 50.99 percent to $173.51 million on Thursday, up from $114.91 million recorded on Wednesday.
The intraday high reached N1,550 on Thursday, up from N1,535 on Wednesday, while the intraday low was N1,430 on Thursday, down from N1,445.48 on Wednesday. In the parallel market, also known as the black market, the naira remained steady at N1,520 per dollar.
Credit: Businessday NG (Text Excluding Headline)
