Naira Gains Strength, Hits N1,490/$ in Parallel Market
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| dollar to naira black market |
The Nigerian Naira showed signs of recovery on Wednesday, strengthening to N1,490 per US dollar in the parallel market, up from N1,502 the previous day. This positive movement reflects a gradual appreciation of the local currency amid ongoing efforts to stabilize the foreign exchange market.
In the Nigerian Foreign Exchange Market (NFEM), the Naira also saw a slight improvement, rising to N1,499.8 per dollar from N1,501 on Tuesday. According to data released by FMDQ, the indicative exchange rate dropped by 20 kobo, signaling a modest gain for the Naira. However, the gap between the parallel market rate and the official NFEM rate widened to N9.8 per dollar, compared to just 50 kobo the day before.
This development comes as stakeholders continue to monitor the dynamics of the foreign exchange market, with the Central Bank of Nigeria (CBN) implementing measures to boost liquidity and stabilize the Naira. The recent appreciation, though marginal, offers a glimmer of hope for businesses and individuals grappling with the challenges of a volatile exchange rate.
Analysts attribute the Naira's slight recovery to improved forex supply and increased confidence in the market. However, the widening margin between the parallel and official rates highlights the persistent pressure on the currency and the need for sustained interventions to bridge the gap.
As the Naira navigates these fluctuations, market participants remain cautiously optimistic, hoping for further stability in the coming weeks. The CBN's continued efforts to address forex scarcity and promote transparency in the market will be critical in determining the Naira's trajectory in the near term.
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