Nigeria’s currency, the naira, recorded a massive appreciation against the United States dollar at the parallel foreign exchange market on Wednesday.
This is as the currency strengthened significantly to N1,490 per dollar up from N1,520 on Tuesday.
According to a Bureau De Change operator, Abubakar Alhasan, there is lower forex demand.
"We buy at N1480 and sell at N1490 on Wednesday due to lower FX demand,” he told Daily Post.
This means that the Naira gained N30 against the dollar on a day-to-day basis.
The last time they were exchanged at this level in the black market was in June 2024.
Meanwhile, at the official market, it dropped marginally by N1.19 to N1,488.56 per dollar on Wednesday, down from N1,487.37, according to data from the Central Bank of Nigeria.
Analysing the trend at both markets, the difference between official and parallel markets has shrunk to 1.44.
It could be recalled that on Tuesday, the Naira appreciated across official and parallel foreign exchange markets upon an interest rate cut by the apex bank by 50 basis points to 27 per cent.
