Exchange rate gap closes as dollar trades at N1,520.24 at official market

The foreign exchange (FX) market reached convergence on Thursday as the naira/dollar rate quoted at N1,520 at both the official and parallel market.

This rare alignment in the FX market marks a pivotal moment, reflecting efforts by the Central Bank of Nigeria (CBN) to stabilise the naira and reduce discrepancies between different market segments. Analysts believe that this convergence may indicate improved transparency and efficiency in the FX market, potentially bolstering investor confidence.

The closing of the exchange rate gap is expected to have broad implications for the economy, influencing everything from import costs to inflation rates.

At the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira lost 0.50 percent as the dollar was quoted at N1,520.24 compared to N1,512.61 quoted on Wednesday, according to the data from the FMDQ Securities Exchange Limited.

The dollar supplied by willing buyers and willing sellers increased by 50.99 percent to $173.51 million on Thursday from $114.91 recorded on Wednesday.

The intraday high closed at N1,550 on Thursday as against N1,535 closed on Wednesday, while the intraday low was quoted at N1,430 on Thursday from N1,445.48 on Wednesday. At the parallel market, popularly called the black market, the naira steadied at N1,520 per dollar.