The Nigerian currency, Naira, experienced a mixed performance on Wednesday, appreciating in the parallel market but depreciating in the official market.
According to reports, the Naira gained strength in the parallel market, trading at N1,575 per dollar, up from N1,585 per dollar on Monday.
However, in the Nigerian Foreign Exchange Market (NFEM), the Naira depreciated to N1,535 per dollar, indicating a N2 depreciation from N1,533 per dollar on Monday.
The Central Bank of Nigeria (CBN) data revealed that the indicative exchange rate for the Naira rose to N1,535 per dollar, resulting in a narrowed margin between the parallel market and NFEM rate to N40 per dollar from N52 per dollar on Monday.
This development suggests that the CBN’s efforts to stabilize the foreign exchange market are yielding results, albeit gradually.
Despite the mixed performance, analysts attribute the Naira’s struggles to Nigeria’s heavy reliance on fossil fuels for foreign exchange earnings, which has amplified selling pressure on the currency amid rising trade tensions between the U.S. and major trading partners.
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