Market News
Naira hits N1,390 on black market as gap closes 2.5% - BUSINESSDAY
The naira strengthened sharply to N1,390 per dollar on Monday in the black market, further narrowing the gap between the parallel market and the official foreign exchange (FX) window by 2.5 percent.
Data obtained from street traders showed the naira appreciated by 2.16 percent to N1,390 on Monday morning, gaining N30 from N1,420 quoted on Friday in the parallel market.
The appreciation has reduced the exchange rate spread to N35 from N92 recorded on Wednesday last week, indicating continued convergence between the two markets.
On Friday, the gap between the official FX market and the parallel market had already narrowed to N65 as Bureau De Change (BDC) operators prepared to access fresh dollar supply from banks following the Central Bank’s reopening of the retail FX window for the bureaus.
The naira depreciated marginally for the second time last week, slipping by N1.76 as the dollar was quoted at N1,355.42 on Friday, a loss of 0.13 percent compared to N1,353.66 recorded on Thursday at the Nigerian Foreign Exchange Market (NFEM), data from the Central Bank of Nigeria (CBN) indicated.
