The Nigerian Naira showed resilience in official trading channels on Friday, October 24, maintaining stability at the Nigerian Foreign Exchange Market (NFEM). Meanwhile, the currency faced downward pressure in parallel markets where the US dollar traded as high as ₦1,515.
At official trading windows frequented by importers and corporations, the dollar remained around ₦1,460. However, cash-driven transactions in Lagos and other commercial centers saw the greenback trade between ₦1,495 and ₦1,515 on the streets. Market data indicated an average parallel rate near ₦1,500.
Market Disparity Impacts Consumers
This widening exchange rate gap significantly impacts daily economic activities. Remittance costs, travel expenses, and prices of imported goods continue rising. Essential commodities like food, electronics, and vehicle parts face upward price pressure.
Foreign exchange dealers report increased cash demand from small-scale traders and travelers. This fuels the parallel market premium despite Central Bank of Nigeria’s (CBN) efforts to stabilize official rates through monetary interventions.
CBN Interventions and Market Sentiment
Analysts credit CBN’s monetary tightening and targeted injections for containing volatility in official channels. However, sentiment-driven speculation still dominates the informal market, especially when dollar access tightens.
Market watchers note several key indicators: Weekly FX turnover, potential CBN dollar injections, and global currency movements. Financial experts caution that stability depends on sustained CBN support and confidence in ongoing reforms.
A financial analyst observed: “While CBN actions preserve official rates now, the parallel market remains vulnerable to cash scarcity and shifting sentiment.” Persistent dollar demand for imports, education payments, and international travel continues testing the Naira’s resilience.
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