The Nigerian currency recorded gains on Tuesday as the naira appreciated in both the parallel market and the official foreign exce window, signaling a modest improvement in market ility.
In the parallel market, the naira strengthened to N1,403 per dollar from N1,408 per dollar recorded on Monday. This reflects a slight but notable gain as demand pressures eased in the informal segment of the foreign exce market.
Similarly, the naira appreciated in the Nigerian Foreign Exce Market. According to data released by the Central Bank of Nigeria the indicative exce rate improved to N1,345 per dollar from N1,355 per dollar on Monday. This represents a N10 appreciation in the official market.
The strengthening of the naira across both segments has contributed to a narrowing gap between the parallel market and the official exce rate window. The margin reduced to N48 per dollar compared to N53 per dollar recorded at the start of the week.
Analysts note that the convergence between both rates is a positive development as it reflects improved liquidity and increased confidence in the foreign exce market. A narrower spread often signals better alignment between official policies and market realities.
Despite the gains, stakeholders continue to monitor factors such as foreign inflows, monetary policy direction, and external economic pressures which could influence the sustainability of the naira’s performance in the coming weeks.
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