Trading data from the London Stock Exchange Group (LSEG) revealed that the naira dropped to 1,248 against the dollar in mid-day trading, a stark contrast to the opening rate of 927 naira on the same day. The currency, however, exhibited volatility, eventually recovering to 845 naira.
Central Bank of Nigeria Governor Olayemi Cardoso reiterated the commitment to allowing market forces to influence exchange rates. He emphasized the importance of establishing clear, transparent, and harmonized rules governing market operations.
The governor's remarks come amid chronic dollar shortages on the official market, contributing to the naira's exchange rate approaching levels seen in the unofficial parallel market, where the currency trades more freely.
On the parallel market, the naira was reported to be trading at around 1,225 against the dollar on Tuesday. In the one-month non-deliverable forwards market, the currency was quoted at 1,002.50 naira.