Naira strengthens to N1,408/$ in parallel market

The naira strengthened against the US dollar on Monday, appreciating to N1,408 per dollar in the parallel market from N1,415 recorded at the weekend.

The local currency also gained ground in the Nigerian Foreign Exchange Market (NFEM), where it appreciated to N1,365 per dollar.

Data from the Central Bank of Nigeria (CBN) showed that the indicative exchange rate stood at N1,365/$, compared with N1,368/$ at the previous weekend, representing a N3 appreciation.

The latest movement further narrowed the exchange-rate gap between the parallel and official markets to N43 per dollar, from N47 recorded on Friday.

Meanwhile, turnover in the interbank segment of the NFEM rose sharply by 132.3 per cent to $137.05 million on Monday, compared with $58.99 million recorded at the end of the previous week.

The naira’s latest gains in both the parallel and official markets come amid increased foreign-exchange market activity, with the narrowing rate differential indicating a gradual convergence between the two market segments.