The Nigerian naira remained relatively stable against the US dollar on Wednesday, trading around the ₦1,347 mark in the official foreign exchange market.
The Central Bank’s official exchange rate put the dollar at approximately ₦1,346.34, while banks were selling at around ₦1,346.90 per dollar.
In the parallel market, however, currency traders were quoting the dollar at about ₦1,400.
At the parallel-market rate, $100 would exchange for approximately ₦140,000, while $1,000 would be worth about ₦1.4 million.
The difference between the official and parallel-market rates has narrowed to roughly ₦54 per dollar. A week earlier, the gap was wider, with the official rate around ₦1,345 and the parallel-market rate close to ₦1,410.
The naira’s recent stability comes amid improved conditions in Nigeria’s foreign exchange market.
The Central Bank determines the official daily rate based on transactions carried out in the market, while parallel-market rates fluctuate according to dollar supply and demand.
As a result, individuals exchanging foreign currency may receive different rates depending on their bank, bureau de change or other authorised exchange provider.
Exchange rates may also continue to change throughout the day as market conditions evolve.