In street trading, the naira fell to ₦1,585 per US dollar, compared with ₦1,570 on Monday, reflecting a ₦15 depreciation in the parallel market.
However, official data from the Central Bank of Nigeria (CBN) painted a different picture. The CBN’s published rates showed the naira appreciating to ₦1,527 per dollar on the NFEM, up from ₦1,532 the previous day. This marks a ₦5 gain on the official window.
As a result of these divergent moves, the gap between the parallel market rate and the official rate widened noticeably. The spread increased to ₦58 per dollar on Tuesday, up from ₦38 on Monday.
The development underscores ongoing volatility and liquidity challenges in Nigeria’s foreign exchange markets. Analysts often view the widening premium between the official and parallel rates as a signal of persistent unmet demand for dollars in the formal system, prompting businesses and individuals to turn to the informal market despite higher costs.
The Central Bank has been taking steps to unify exchange rates and improve liquidity since last year’s reforms, but the naira continues to face pressures from limited foreign currency inflows and strong demand from importers, travelers, and investors.
Market watchers will be looking for further policy moves from the CBN to narrow the spread and stabilize the currency in both the official and parallel markets.