By Seun Ibiyemi
The Naira recorded a slight appreciation against the United States dollar at the official foreign exchange market on Wednesday, closing at ₦1,379.68/$, compared with ₦1,383.62/$ recorded in the previous trading session.
At the parallel market, the local currency traded at ₦1,390/$ for buying and ₦1,400/$ for selling, reflecting relative stability and maintaining a narrow spread with the official market.
Data from the Nigerian Foreign Exchange Market (NFEM) showed that the official exchange rate remained largely stable, underscoring the impact of the Central Bank of Nigeria’s ongoing reforms aimed at improving liquidity and transparency in the foreign exchange market.
Market analysts said the modest gap between the official and parallel market rates indicates improved foreign exchange supply through formal channels, although demand from importers, travellers and other end-users continues to support activity in the informal market.
The Central Bank of Nigeria publishes the NFEM rate as a volume-weighted average of transactions executed in the official foreign exchange market, making it the benchmark exchange rate for government and formal financial transactions.
Meanwhile, the parallel market continues to serve individuals and businesses unable to access foreign exchange through official channels.
