Yesterday, the naira continued to lose value against the US dollar, thereby widening the gap between the official and parallel market exchange rates.
Based on the most recent data from the Nigerian Foreign Exchange Market (NFEM), the naira closed at ₦1,537 per dollar, marginally down from the ₦1,536.99 recorded the previous day.
Sharp movement was observed in the parallel market, with the naira dropping from ₦1,540 on Monday to ₦1,550 per dollar. The gap between the markets, which started at just over ₦3 early in the week, grew to as much as ₦13, implying greater volatility and stress on Nigeria’s local currency.
The Central Bank of Nigeria (CBN) validated the minute correction on the official exchange window. However, traders have observed increased volatility across the parallel market, where speculative activity and demand pressures continue to significantly influence exchange behavior.
The News Chronicle learned that this growing gap is causing new concerns among homeowners and businesses, particularly import-dependent companies already struggling with rising costs. Some worry that the increasing distance would erode investor confidence and destroy trust in the existing currency adjustments, as the naira’s movement shows local alongside worldwide economic constraints.
Market analysts claim that the current conditions highlight the delicate balance the CBN must strike in managing liquidity and discouraging speculative activities. They warn that the gap between official and unofficial rates may continue to widen without greater dollar inflows and more aggressive monetary actions, thereby emphasizing the importance of financial stability even more.
Even as the apex bank seeks to increase transparency and introduce discipline to the foreign currency market, volatility remains a persistent challenge.
Stakeholders are closely monitoring the next policy moves to see if they will stabilize the currency and close the gap, as businesses continue to press for a more rational approach. more consistent and predictable system of interaction.
