The naira is appreciating on the NAFEX I&E window just as it takes a nosedive on the parallel market.
Following the Central Bank of Nigeria’s announcement to cut its supply of dollars to the parallel market because “they have allowed themselves to be used for graft” the naira started appreciating on the NAFEX window.
On Wednesday, the naira exchanged to the dollar at the rate of N411.50 per dollar meanwhile it closed at N411.67 on Tuesday. The naira also went as low as N387.67 per dollar and as high as N412.95 per dollar on Wednesday.
But the cut in supply did not bode so well for the parallel market which some believe to be the true reflection of the naira. On the black market, the naira exchanged for N522 per dollar on Wednesday evening; while one British Pound is N710 and one Euro is N600.
Market analysts fear that the CBN’s recent move will cause further and severe depreciation of the naira and others believe that the CBN’s game plan is to make the parallel market rates useless.