Naira Exchange Rates Gap Closes To N40 Between Official And Parallel Market

CBN Reiterates Determination To Phase-out Old Naira Notes

Based on data analyzed by Bizwatch Nigeria, the difference between official and parallel market currency rates has shrunk to N40 as the naira begins to recover from various pressures.

The naira closed at ₦1,595.11 per US dollar on the official market, up 0.89% in the foreign exchange market. After the apex bank started foreign currency sales, there was an improvement in FX inflows into the autonomous FX market, which coincided with the local currency strength’s comeback.

Additionally, the market’s quick increase came after the local government took aggressive steps to maintain the value of the naira. The top bank raided FX whales in the shadow economy in coordination with the securities agency.

The latest decision to bar Binance from trading naira on its crypto-powered peer-to-peer platform has also been positive on the exchange rate in the parallel market. The exchange rate at the parallel market has however regained value more than the official rate in the last two weeks.

In the parallel market, the Naira closed at N1,555 against the US dollar on Thursday after the Central Bank of Nigeria’s (CBN) decision to resume US dollar sales worth $20,000 per bureau de change.

In the global commodity market, Brent crude declined by 0.12% to close at $82.05 per barrel, while WTI crude advanced by 0.18% to $78.68 per barrel.

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