Naira Closes At N756/$ As Official And Parallel Market Rates Converge Week After FX Policy

In a positive development for the Nigerian economy, the Nigerian naira closed stronger on Tuesday, reaching N756 against the dollar at the investors and exporters (I&E) window. This closing rate reflects a notable appreciation of 1.8 percent compared to the previous day’s rate of N770, as reported by FMDQ Securities Exchange Limited.

Notably, the foreign exchange rates in both the official and parallel markets converged on Tuesday, just a week after the government implemented a policy to unify the exchange rate windows. This convergence signifies a significant step forward in harmonizing the rates across different markets.

Bureau de Change (BDC) operators reported that the local currency was traded between N754 and N757 against the greenback in the parallel market. This range indicates relative stability and reduced volatility in the parallel market, which is encouraging for businesses and investors alike.

The convergence of exchange rates between the official and parallel markets is expected to have several positive effects on the Nigerian economy. It can enhance transparency, boost investor confidence, and attract foreign direct investment. Moreover, a more unified exchange rate system can facilitate smoother international trade and reduce the pressure on foreign reserves.