The Nigerian Naira experienced fluctuations in value across different exchange markets on Monday, reflecting ongoing volatility in the foreign exchange landscape. In the parallel market, also known as the black market, the Naira depreciated further, dropping to ₦1,510 per US dollar from the ₦1,505/$1 recorded over the weekend. This decline signals increased pressure on the local currency in the informal exchange segment.
However, in the Nigerian Foreign Exchange Market (NFEM), the Naira demonstrated some resilience, appreciating slightly to ₦1,499/$1, compared to the previous rate of ₦1,500/$1 last Friday. According to data released by the Central Bank of Nigeria (CBN), this represents a marginal gain of ₦1 in the official exchange rate.
Despite this minor improvement in the NFEM, the widening gap between the official and parallel market exchange rates remains a concern.
The spread between the two markets expanded from ₦5/$1 last weekend to ₦11/$1, highlighting the persistent divergence in forex access and pricing mechanisms.
The Naira's movement in both markets underscores the continued challenges facing Nigeria's foreign exchange system, driven by factors such as dollar supply constraints, speculative trading, and economic uncertainties.
