The exchange rate between the naira and the dollar has dropped back to approximately N1,745/$1 on the parallel market, reversing sharply from the sub-N1,600 levels recorded late last week.
As of 10 a.m. on Wednesday, December 11, Nairametrics’ checks revealed several rates exceeding the N1,700/$1 mark, prompting concerns that the gains made last week might have been a “dead cat bounce,” a market term for short-lived recoveries.
On peer-to-peer (P2P) exchanges, rates were quoted at N1,715/$1, while some International Money Transfer Operators (IMTOs) listed rates at N1,745/$1.
In contrast, the official exchange rate for the naira closed at approximately N1,525/$1 on Tuesday, marking the strongest level since the introduction of the Enhanced Foreign Exchange Market (EFEM).
This has widened the gap between the official and parallel market rates to around N200, raising fears of an increasing disconnect between the central bank-regulated official market and the parallel market, where most retail transactions occur.
