In the parallel market, the Naira saw a marginal gain, strengthening to N1,618 per dollar on Tuesday. This represents a slight appreciation from the rate of N1,620 per dollar recorded on Monday, indicating a minor increase in demand or a decrease in supply of the dollar in this segment.
Conversely, the official exchange rate within the Nigerian Foreign Exchange Market (NFEM) revealed a weakening of the Naira. Data released by the Central Bank of Nigeria (CBN) indicated that the indicative exchange rate climbed to N1,604 per dollar on Tuesday. This marks a depreciation of N5 for the Naira compared to Monday's rate of N1,599 per dollar.
As a direct consequence of these contrasting movements, the disparity between the parallel market exchange rate and the official NFEM rate has narrowed. The margin between the two rates now stands at N14 per dollar, a decrease from the N21 per dollar difference observed on Monday.
This divergence in the Naira's performance across different segments of the foreign exchange market highlights the ongoing complexities and potential volatility within Nigeria's currency exchange system.
While the slight appreciation in the parallel market might offer some temporary relief, the depreciation in the official window remains a key indicator for economic actors and policymakers to monitor closely.
The narrowing of the gap between the two rates could suggest a potential convergence, although the underlying factors driving these separate movements require further analysis to ascertain the long-term trend.