Naira rises to ₦1,512 against dollar in parallel market

The Naira recorded a marginal appreciation in the parallel market on Thursday, strengthening to ₦1,512 per dollar from ₦1,515 on Wednesday. However, the local currency depreciated in the Nigerian Foreign Exchange Market (NFEM), trading at ₦1,505 per dollar, down from ₦1,502 the previous day, according to data from the Central Bank of Nigeria (CBN). The slight gain in the parallel market helped narrow the gap between the official and black market rates, with the margin shrinking to ₦7 per dollar from ₦13 recorded on Tuesday. What is the black market rate? Despite this improvement, fluctuations persist in the black market, where the Naira slipped to ₦1,520 per dollar on Thursday, compared to ₦1,490 the day before. “We buy dollars at ₦1,530 and sell at ₦1,520 today,” a Bureau de Change operator, Farouk, told Pulse Nigeria. The depreciation comes as Nigeria’s external reserves dropped to $34.34 billion as of March 4, 2025, down from $34.41 billion recorded on February 28, 2025, according to CBN data. The recent trends highlight ongoing volatility in the foreign exchange market, raising concerns over the sustainability of the Naira’s stability. Analysts suggest that further intervention by the CBN may be required to stabilise the currency amid dwindling reserves and fluctuating demand for foreign exchange.