The Nigerian Naira has experienced a significant depreciation in the parallel market, reaching N1,750 per dollar on Friday, a slight decline from N1,745 per dollar on Thursday. In contrast, the official exchange rate in the Nigerian Autonomous Foreign Exchange Market (NAFEM) appreciated to N1,652.62 per dollar.
This widening gap between the parallel and official market rates highlights ongoing challenges in Nigeria’s foreign exchange market. The Naira’s decline in the parallel market reflects increased demand for foreign currency and limited supply, exacerbated by global economic pressures and domestic factors.
The Central Bank of Nigeria (CBN) has implemented various measures to stabilize the Naira, including interventions in the official market and efforts to boost foreign exchange reserves. However, the persistent disparity between the parallel and official rates indicates that these measures have yet to fully address the underlying issues.
Economists suggest that a comprehensive approach, including policy reforms and diversification of the economy, is essential to restore confidence in the Naira and achieve long-term stability in the foreign exchange market.
As the Naira continues to face downward pressure, stakeholders are closely monitoring developments, hoping for effective interventions to mitigate the impact on businesses and individuals reliant on foreign currency transactions.
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