Dollar exchanges at N1,346 official rate, N1,400 in parallel market

The Nigerian naira remained relatively stable against the United States dollar on Wednesday, although a noticeable difference persists between the official foreign exchange market and the parallel market.

The latest available data from the Nigerian Foreign Exchange Market (NFEM) placed the dollar at approximately ₦1,346.34 on Wednesday, reflecting the current benchmark exchange rate.

According to the Central Bank of Nigeria (CBN), the NFEM rate is calculated using the volume-weighted average of transactions carried out in the market and represents the official exchange rate for the day.

Other confirmed figures from the official market showed the naira closing at about ₦1,346.90 to the dollar, keeping the currency within the ₦1,347/$ range.

Meanwhile, the dollar was trading at approximately ₦1,400 in the parallel market on Wednesday, according to Aboki Forex, which regularly monitors and publishes street-market exchange rates.

At the parallel-market rate of ₦1,400 to the dollar, $100 would be worth about ₦140,000, while $1,000 would exchange for approximately ₦1.4 million.

The gap between the NFEM rate of ₦1,346.34 and the parallel-market rate of ₦1,400 stands at roughly ₦53.66 per dollar.

The naira’s relative stability comes amid improved conditions in Nigeria’s foreign exchange market. The previous week, the currency was trading at around ₦1,345/$ in the official market, compared with approximately ₦1,410/$ on the streets, indicating a reduction in the disparity between both markets.

The CBN’s latest data indicate that NFEM rates are determined from actual transactions in the official market. In contrast, parallel-market rates can vary during the day based on dollar availability, demand, location and transaction volumes.