Exchange Rate: Official and Parallel FX Markets Align for the First Time in Years

The naira closed at N1,502 per dollar on both the official and parallel foreign exchange (FX) markets on Friday, marking the first time in nearly two years that both rates have aligned.

This development represents a 3.7 percent appreciation from Monday’s rate of N1,560 per dollar in the parallel market. The currency traded flat at N1,535 per dollar on Tuesday and Wednesday before strengthening to N1,503 per dollar on Thursday.

Bureaux de change (BDC) operators in Lagos reported that on Friday, the dollar’s buying price stood at N1,470, while the selling price was N1,502, resulting in a margin of N32. Market fluctuations saw the rate dip to N1,490 earlier in the day before settling at N1,502.

Similarly, in the official market, the naira closed at N1,502 per dollar, strengthening from N1,512 per dollar on Monday. The currency remained steady at N1,510 per dollar on Tuesday and Wednesday before appreciating further to N1,496 per dollar on Thursday.

With this convergence, the gap between the black market and the official exchange window has been effectively eliminated. The last time both rates aligned was on June 20, 2023, at N756 per dollar, following the government’s move to unify exchange rate windows.

The Central Bank of Nigeria (CBN) recently announced that eligible BDC operators can access the Nigerian Autonomous Foreign Exchange Market (NAFEM) to purchase $25,000 weekly until May 30. The apex bank stated that BDCs would acquire foreign exchange from authorised dealers—banks licensed to trade FX—to meet retail market demand.