Business
Naira Gains as Exchange Rate Gap Narrows
The Naira strengthened against the U.S. dollar in the parallel market, appreciating to N1,550 per dollar on Wednesday from N1,565 per dollar recorded on Tuesday. This improvement marks a positive shift in the value of the local currency against the dollar.
In the Nigerian Foreign Exchange Market (NFEM), the Naira also gained value, trading at N1,509.53 per dollar. According to data published by FMDQ, the indicative exchange rate for the Naira declined to N1,509.53 per dollar from N1,510.33 per dollar the previous day, reflecting an 80 kobo appreciation.
As a result of these fluctuations, the exchange rate margin between the parallel market and the NFEM narrowed significantly to N40.47 per dollar, down from N54.67 per dollar on Tuesday. This trend signals a reduction in the disparity between the official and unofficial exchange rates, which could indicate improving stability in the foreign exchange market.