Naira crumbles, trades N1,585/$ in parallel market

The Naira depreciated to N1,585 per dollar in the parallel market on Tuesday, down from N1,570 per dollar on Monday.

However, it appreciated to N1,527 per dollar in the Nigerian Foreign Exchange Market (NFEM) from N1,532 per dollar on Monday, showing a N5 appreciation.

This has widened the margin between the parallel market and NFEM rate to N58 per dollar from N38 per dollar the previous day.

According to the Central Bank of Nigeria (CBN), the Naira’s value improved in the official market, closing at N1,532 per dollar on Monday, which is its highest level in three months.

The Naira secured a N60 appreciation against the dollar in the parallel market in June and N53 appreciation in the official market.

The CBN’s intervention in the market, selling approximately $86.6 million last week, has helped ease demand pressure and contributed to Naira’s appreciation in both official and unofficial foreign exchange markets.