The Central Bank of Nigeria’s exchange rate data indicated that the currency has remained broadly stable despite fluctuations in global currency markets and domestic demand for foreign exchange.
By Channels Television
A man exchanges Nigeria’s currency Naira for US dollars in Lagos, Nigeria (Photo by PIUS UTOMI EKPEI – AFP)
Data from the Nigerian Foreign Exchange Market (NFEM) showed the naira trading at around ₦1,369 to the dollar Wednesday, with the official market maintaining the narrow trading band seen in recent weeks.
At the parallel market, also known as the black market, the dollar exchanged at between ₦1,400 and ₦1,408, depending on location and transaction volume.
Market trackers showed that the gap between the official and parallel market rates remained below ₦40, reflecting continued convergence between both markets compared to previous years.
Based on prevailing rates, $100 would exchange for about ₦136,900 at the official NFEM rate and approximately ₦140,000 to ₦140,800 in the parallel market.
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Analysts say the relatively narrow spread between the two markets is a sign of improved liquidity and the impact of ongoing foreign exchange reforms introduced by monetary authorities.
The Central Bank of Nigeria’s exchange rate data indicated that the currency has remained broadly stable despite fluctuations in global currency markets and domestic demand for foreign exchange.
