Forex dealers attributed the parallel market gain to increased dollar inflows from remittances and reduced demand pressure.
The Naira yesterday appreciated in the parallel market, trading at N1,560 per dollar compared to N1,565 per dollar last Friday.
However, the local currency weakened in the Nigerian Foreign Exchange Market (NFEM), where it closed at N1,538.4 per dollar from N1,534.9 per dollar recorded over the weekend.
Data from the Central Bank of Nigeria (CBN) indicated a N3.5 depreciation in the NFEM rate. Despite this, the gap between the parallel market and the NFEM rate narrowed to N21.6 per dollar, down from N30.1 per dollar last weekend.
Forex dealers attributed the parallel market gain to increased dollar inflows from remittances and reduced demand pressure. “We are seeing more supply coming into the market this week,” a trader said.
Analysts, however, warned that sustained stability would depend on the CBN’s liquidity support and macroeconomic reforms aimed at boosting investor confidence.