The Nigerian Naira continues its volatile journey in the foreign exchange markets as it depreciated further in the parallel market to ₦1,620 per dollar on Tuesday, up from ₦1,610 recorded on Monday.
However, the story differs slightly in the Nigerian Foreign Exchange Market (NFEM), where the naira appreciated slightly, trading at ₦1,579 per dollar compared to ₦1,580 the previous day, according to data released by the Central Bank of Nigeria (CBN).
This divergence has once again widened the gap between the official and parallel market exchange rates, with the margin rising to ₦41, up from ₦30 previously. Experts warn that this continued disparity may encourage speculation and put additional pressure on the naira, despite the CBN's recent interventions.
Financial analysts are urging for more structured forex reforms and demand management, especially amid concerns about Nigeria’s import-heavy economy and rising inflation.
The persistent volatility in the FX market has raised concern among importers, businesses, and investors, who rely on a more stable and predictable exchange rate system.
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The Central Bank’s reforms — including clearing forex backlogs and boosting dollar supply — have yet to deliver lasting results. Many are now calling for urgent policy synergy between the monetary and fiscal arms of government to address currency depreciation sustainably.
As global oil prices fluctuate and Nigeria struggles to boost non-oil exports, the naira’s strength remains precarious — a key concern for economic planners and everyday Nigerians alike.
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