Naira maintains n361 per dollar parallel market
According to recent reports, the Nigerian Naira has maintained a relatively stable rate against the US Dollar in the parallel market, trading at around N361 per dollar.
The parallel market, also known as the black market, is where individuals and businesses exchange currencies outside of the official exchange rate set by the Central Bank of Nigeria (CBN). The parallel market rate is often influenced by supply and demand factors, as well as speculation and market sentiment.
The stability of the Naira against the Dollar in the parallel market is a positive development, as it suggests that the currency is not experiencing significant pressure or volatility. This could be attributed to various factors, including:
- Improved foreign exchange reserves: The CBN has been working to increase the country's foreign exchange reserves, which has helped to stabilize the Naira.
- Increased dollar inflows: The country has seen an increase in dollar inflows from various sources, including oil exports, remittances, and foreign investments.
- Reduced demand for foreign exchange: The CBN has implemented measures to reduce demand for foreign exchange, such as restricting access to foreign exchange for certain transactions.
- Market sentiment: The parallel market rate is often influenced by market sentiment, and a stable rate can be attributed to a lack of panic or fear among market participants.
However, it's essential to note that the parallel market rate is not always a reliable indicator of the Naira's true value. The CBN has been working to promote the official exchange rate and reduce the use of the parallel market.