The naira strengthened slightly on the parallel market yesterday, appreciating to N1,470 per dollar from N1,475 recorded over the weekend. The movement reflects modest support from informal market demand dynamics.
In contrast, the local currency weakened in the Nigerian Foreign Exchange Market (NFEM), where it slipped to N1,447 per dollar. According to data from the Central Bank of Nigeria (CBN), the official rate eased from N1,444 per dollar last Friday, marking a N3 depreciation.
The divergent market movements narrowed the gap between the parallel market and NFEM rates to N23 per dollar, down from N31 last week Friday, indicating reduced volatility between both windows.
Analysts say the tighter spread may signal improved liquidity management, though traders remain cautious amid persistent FX pressures.