The naira recorded mixed movements against the United States dollar on Wednesday, October 7, strengthening at the official foreign exchange window but weakening in the parallel market.
Latest market figures showed that the local currency appreciated at the Nigerian Foreign Exchange Market (NFEM), while the dollar moved higher outside the official window.
Dollar To Naira Exchange Rate Today
Market| Dollar Rate| Previous Rate| Movement
Official NFEM| ₦1,331.50/$| ₦1,332.90/$| Naira gained ₦1.40
Parallel Market| ₦1,362/$| ₦1,357/$| Naira lost ₦5
Market Gap| ₦30.50| ₦24.10| Gap widened
Naira Strengthens At Official Market
At the official NFEM window, the naira closed at ₦1,331.50 per dollar, compared with ₦1,332.90 recorded in the previous trading session.
Data from the Central Bank of Nigeria (CBN) showed that the movement represented a ₦1.40 appreciation in the value of the local currency.
Trading activity also increased significantly during the session.
NFEM interbank turnover climbed to $313.6 million from $72.12 million in the previous session, representing an increase of about 334.8 per cent.
The sharp rise in turnover showed considerably higher foreign exchange activity at the official window.
Dollar Rises Outside Official Window
The naira, however, moved in the opposite direction in the parallel market on Wednesday.
The dollar traded at approximately ₦1,362, compared with about ₦1,357 recorded on Tuesday.
That represents a ₦5 weakening of the naira against the dollar in that segment of the foreign exchange market.
Parallel market rates can vary depending on location, dealer and the size of a transaction.
Gap Between Both Markets Widens
The different movements at the two markets widened the gap between their exchange rates.
With the official rate at ₦1,331.50 and the parallel market rate around ₦1,362, the difference stood at approximately ₦30.50 per dollar.
The gap had been about ₦24.10 during the previous session.
The latest figures therefore show the naira gaining ground at the official window despite losing value outside it.
Businesses, investors and consumers will continue to monitor foreign exchange liquidity and dollar demand as both factors influence the direction of the naira in the coming trading sessions.
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