Naira appreciates to N1,416/$ in parallel market

The Nigerian Naira saw a slight appreciation in the parallel market, trading at N1,416 per dollar on Thursday, up from N1,420 the previous day. This movement indicates a strengthening of the local currency against the U.S. dollar in this segment of the foreign exchange market.

Conversely, the Naira experienced a minor depreciation in the official Nigerian Foreign Exchange Market (NFEM). The indicative exchange rate rose to N1,365.1 per dollar from N1,363.11 on Wednesday, marking a depreciation of N1.99. This official rate reflects the Central Bank of Nigeria's (CBN) managed currency value.

Despite the mixed movements, the margin between the parallel and official exchange rates narrowed to N50.9 per dollar, down from N59.11 on Wednesday. This reduction in the spread suggests a move towards greater convergence between the two markets. Additionally, the interbank turnover at the NFEM saw a significant increase of 31 percent, reaching N98.8 million compared to N75.4 million on Wednesday, indicating higher trading volumes.