Data from the Nigerian Foreign Exchange Market (NFEM) showed that the official exchange rate stood at approximately ₦1,380.17 to the US dollar on July 1. The rate reflects continued stability in the official market after the Central Bank of Nigeria’s recent efforts to improve liquidity and transparency in the foreign exchange system.
The CBN publishes the NFEM rate as a volume-weighted average derived from trades executed in the official foreign exchange market. The official NFEM rate remains the benchmark exchange rate for government and formal financial transactions. At the same time, the parallel market continues to serve individuals and businesses unable to access foreign exchange through official channels.
In the parallel market, also known as the black market, the dollar is exchanged at about ₦1,390 for buying and around ₦1,400 for selling, depending on location and dealer quotations. READ ALSO: Dangote To Raise Refining Capacity To 2.1mb/d Although demand from importers, travelers, and other end-users continues to support activity in the informal market, analysts say the relatively narrow premium in the parallel market suggests improved supply of foreign exchange through official channels.