Naira Official, Parallel Rates Converge as Nigeria Eyes Reforms
- Deputy Governor sees more measures within ‘couple of weeks’
- Market to determine prices, but not in complete free float
The headquarters of the Nigerian central bank in Abuja, Nigeria.
Photographer: George Osodi/Bloomberg
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The naira’s official and parallel rates converged on Tuesday after days of volatility sparked by the central bank’s move to allow lenders to freely determine the price of Nigeria’s currency.
The naira strengthened 1.8% to 756.61 per dollar at the close of trade, according to the website of the FMDQ Exchange. Meanwhile, it hovered at 757 in the unofficial market, according to Abubakar Mohammed, chief executive officer of Forward Marketing bureau de change Ltd in Lagos who compiles the parallel market data. Thus the rates practically closed the gap between them a day after the official value was 1.6% weaker than the parallel market.