Naira Slips as Dollar Hits N1,410 on Parallel Market

(Naira And Dollar. Photo by Nairacompare)

The naira weakened against the dollar on Wednesday, trading at different prices in Nigeria's official and unofficial markets.

In the official foreign exchange market run by the Central Bank, the naira closed at N1,329 per dollar on Tuesday.

This official rate, known as the NFEM rate, is calculated from actual bank transactions across the country.

The parallel market where people buy and sell dollars outside the banking system told a different story.

Dealers there were quoting the dollar at between N1,400 and N1,410, significantly higher than the official rate.

One forex tracker put it at N1,410, while another showed N1,405.

The gap between the official rate and what dealers charge on the street shows the divide between regulated banking transactions and the open market where supply and demand set the price.

In the parallel market, rates can shift several times during the day depending on where you are and who you deal with.

For Nigerians buying or selling dollars, the actual cost depends on the dealer, location and how much money is involved.

The unofficial market is less stable and more influenced by real-time trading activity.

As the day progressed, the official benchmark remained around N1,329.43 per dollar while the parallel market hovered near N1,400 to N1,410.