Currency movements were mixed on Thursday as the naira appreciated in the parallel market but recorded a marginal decline at the official window, reflecting ongoing adjustments across Nigeria’s foreign exchange segments.
In the parallel market, the naira strengthened to N1,382 per dollar, improving from N1,391 per dollar on Wednesday. The N9 gain suggests improved dollar supply or reduced speculative pressure in the informal segment of the market.
However, at the Nigerian Foreign Exchange Market (NFEM), the local currency edged lower. Data released by the Central Bank of Nigeria showed that the indicative exchange rate rose to N1,361 per dollar from N1,359.5 per dollar in the previous session — representing a N1.5 depreciation.
The contrasting movements across both markets led to a narrowing of the exchange rate gap. The spread between the parallel market and the official window contracted to N21 per dollar, down from N31.5 per dollar on Wednesday.
The reduced margin signals a gradual convergence between both rates, a development often viewed by analysts as supportive of currency stability. Sustained narrowing of the gap could ease arbitrage opportunities and improve overall transparency in the foreign exchange market, though near-term volatility remains tied to liquidity conditions and external inflows.