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The exchange rate at the Nigerian Foreign Exchange Market (NFEM) opened at approximately 1,379.30 per dollar during the early hours of Tuesday.
Tuesday’s exchange rate shows a slight decline against the United States Dollar (USD) compared with Monday’s figures. The exchange rate on Monday was ₦1,377.80 per Dollar but compared with the previous week’s closing figure of ₦1,380.79, Tuesday’s exchange rate shows slight appreciation.
The market rate, however, fluctuated between 1,380.10 and 1,378.70 in the previous week. According to market analysts, the current official exchange rate reflects a balanced demand-supply dynamic as the second quarter gains momentum. Whereas the foreign exchange market experienced mid-volatility in late March.
The dollar is trading within a similar range to the official market rates in the parallel market, commonly referred to as the black market. The exchange rate reportedly hovered around 1,379 early Tuesday morning.
Market analysts say this stability in the official and parallel market rates is a result of the ongoing exchange rate unification policies initiated by President Bola Tinubu in 2023.
Nigeria has had multiple exchange rates for many decades. There were always large disparities between the official rate set by the Central Bank of Nigeria (CBN) and the parallel/black market rate determined by supply and demand. This caused distortions, making imports expensive and fueling inflation.
The Nigerian government and the CBN implemented policies to unify the exchange rate, aiming to reduce the gap between official and parallel rates
