Naira Gap Widens as Parallel Market Outpaces Official Rate
AFRICA
Image: arbiterz.com
Nigeria's naira weakened to about 1,334 to the dollar on the official market on September 10, while traders on the Lagos parallel market were quoting it as low as 1,390 to 1,410, a gap of roughly 60 to 80 points.
Analysts point to the mismatch between oil receipts, remittances, and import demand as the driver of the widening spread, even as the central bank's foreign reserves climbed to $54.28 billion. The divergence comes as Nigeria heads toward September 19 by-elections in several states.
A persistent gap between the official and street rates has historically pressured the central bank toward further interventions to close it.