New Dollar Rates: Gap Between Official And Parallel Markets Widens as Naira Depreciates
- There is a renewed volatility in the Nigerian foreign exchange market, leading to widening gap in the official and parallel markets
- While the official exchange rate window is showing signs of stability, the parallel segment has veered off
- The development has led to a massive gap between the two windows, with exchange rate now standing at a wide margin
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigeria’s foreign exchange market saw renewed volatility as the gap between official and parallel dollar rates stretched wider, raising new concerns about currency stability.
Fresh market data showed that the naira strengthened marginally on the official window but weakened in the informal market, creating a wider spread that signals deeper pressure on the economy.
Source: Getty Images
Official dollar rate strengthens on improved liquidity
The FX spread, which tracks the difference between official and black-market rates, widened to 1.70 percent from 1.14 percent the previous day.
This shift highlights the continued mismatch in market forces, despite measures aimed at curbing speculation and boosting liquidity.
At the Nigerian Foreign Exchange Market, the naira appreciated by N3.04 to close at N1,445.39 per dollar.
Analysts attributed this rise to stronger supply and improved demand management by regulators.
According to updated data from the Central Bank, the NFEM rate firmed slightly, reversing some of the losses recorded earlier in the week.
This uptick reflects a temporary easing of pressure as liquidity improves, supported by tighter oversight and interventions designed to guide the market toward stability.
Parallel market dollar rate falls, deepening the FX gap
While gains were recorded officially, the parallel market told a different story. The naira weakened by N5, closing at N1,470 per dollar.
This depreciation widened the gap between both markets and fueled fresh conversations about price discovery, market confidence and speculative shifts.
Currency traders noted that although speculative activity has dropped in recent weeks, demand at the informal window remains elevated, especially among businesses seeking quick access to dollars.
External reserves rise, offering a layer of support
Despite the tension in the FX space, Nigeria’s external reserves provided a glimmer of stability. The reserves climbed to $44.67 billion, marking a 9.3 per cent increase from the start of the year.
Economists say the stronger reserve position could help moderate volatility, especially if global conditions remain steady.
They added that the naira is likely to trade around present levels in the coming days, shaped mostly by real demand and supply movements rather than speculation.
Oil prices ease as global market sentiment softens
In global commodities, oil prices slipped on Tuesday as traders weighed dimming optimism over Russia-Ukraine peace efforts against concerns about possible oversupply.
Brent crude dropped by 76 cents to settle at $62.41 per barrel, while West Texas Intermediate fell by 71 cents to $58.61.
Market analysts said the decline reflects a mix of geopolitical caution and supply-side uncertainty.
Gold prices pull back after recent rally
Gold also retreated as investors locked in profits following a strong run that pushed the metal to a six-week high.
Spot gold dipped by 0.85 percent to $4,196.96 per ounce, while U.S. futures slipped by 1.07 percent to $4,229.
Source: Getty Images
Traders expect a cautious atmosphere ahead of upcoming U.S. economic data and next week’s Federal Reserve meeting, a development that could shape short-term movements across global markets.
CBN sells dollars to Access, UBA, Zenith, other banks
Legit.ng earlier reported that Nigeria’s foreign exchange market received fresh momentum this week after the CBN intensified its FX intervention strategy.
The apex bank again sold foreign currency to authorised dealers and banks to help ease pressure on the naira and steady the fast-moving market.
The latest transaction saw the CBN supply 36.60 million dollars into the market on Tuesday. Updated FX figures confirm that this is in addition to the 40 million dollars released last week.
Source: Legit.ng
