Naira strengthens to N1,380/$ in parallel market

The naira gained ground against the dollar in the parallel market on Tuesday, strengthening to N1,380/$ from N1,390/$ recorded on Monday.

The local currency, however, weakened slightly in the Nigerian Foreign Exchange Market, where the indicative exchange rate stood at N1,329.50/$.

Data from the Central Bank of Nigeria showed that the rate moved from N1,329/$ on Monday to N1,329.50/$ on Tuesday, representing a 50-kobo depreciation.

The contrasting movements in the two markets narrowed the gap between the parallel and official exchange rates to N50.50/$, compared with N61/$ recorded on Monday.

Meanwhile, trading activity in the official foreign exchange market increased significantly during the session.

The value of transactions in the NFEM rose by 177.6 per cent to $262.12m, up from $94.4m recorded on Monday.

The increased turnover came as the naira recorded marginal movement in the official market while gaining N10 against the dollar in the parallel market.