Dollar Gains Strength Against Naira in Parallel Market 1500/$1
The Naira has been experiencing fluctuations against the US Dollar in both the parallel market and official exchange rates, with some periods of recovery and depreciation.
In recent months, the Naira has shown signs of recovery in the parallel market, appreciating to N1,475/$1 in early June 2024 from a previous high of N1,500/$1. This recovery is attributed to increased dollar sales by the Central Bank of Nigeria (CBN) to Bureau de Change operators and other measures aimed at stabilizing the currency.
However, the Naira has also faced depreciation pressures. In mid-June 2024, it depreciated to N1,500/$1 in the parallel market. This depreciation comes despite efforts by the CBN to stabilize the currency through increased dollar sales and other policy measures.
The fluctuations in the Naira’s value against the dollar reflect the ongoing challenges faced by the Nigerian economy, including issues related to foreign exchange supply, demand, and market speculation. The government and the CBN continue to implement measures aimed at stabilizing the currency and addressing the underlying economic issues.
It is important to note that the parallel market exchange rate is not the official rate set by the CBN, but rather a reflection of the supply and demand dynamics in the informal foreign exchange market. The official exchange rate, as reported by the FMDQ Securities Exchange, has also experienced some volatility but tends to be more stable than the parallel market rate.
