The naira strengthened against the US dollar across both the parallel and official foreign exchange markets on Tuesday, as the exchange-rate gap between the two segments narrowed.
In the parallel market, the naira appreciated to N1,387 per dollar, from N1,390/$1 recorded on Monday.
Similarly, the local currency appreciated in the Nigerian Foreign Exchange Market (NFEM), with the indicative exchange rate standing at N1,322.90/$1, according to data from the Central Bank of Nigeria (CBN).
The CBN data showed that the rate moved from N1,320/$1 on Monday, representing a N2.90 appreciation in the value of the naira.
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The latest movement further reduced the exchange-rate differential between the parallel and official markets to N64.10 per dollar, compared with N70/$1 on Monday.
However, activity in the official market weakened during the period, as interbank turnover in the NFEM fell significantly.
The value of transactions declined by 48.07 per cent to $55.60 million, from $107.07 million recorded on Monday.
The decline in turnover came despite the naira’s appreciation, indicating reduced transaction volumes in the official foreign exchange market during the session.
