The Naira today depreciated to N870 per dollar in the parallel market from N840 per dollar on Monday, indicating N30 depreciation.

But the national currency  appreciated to N791.42 per dollar in the official Investors and Exporters, I&E window.

Data from FMDQ showed that the indicative exchange rate for the Investors and Exporters (I&E) window fell to N791.42 per dollar from N792.04 per dollar from Monday, indicating 62 kobo appreciation for the naira.

Consequently, the gap between the official and parallel market exchange rates widened to N78.58 per dollar yesterday from N47.96 per dollar on Monday.

Exchange Rate Volatility

Meanwhile the Central Bank of Nigeria, CBN, said that the ongoing exchange rate volatility in the official market will moderate soon.

Acting Governor CBN, Mr. Ade Shonubi gave this assurance while addressing the press at the end of the Monetary Policy Committee, MPC meeting in Abuja yesterday.

Shonubi said: “We are not trying to unify any rate. We believe that we need to encourage the market to be more efficient and be more effective and that is a bit of time. Some of the volatility you have seen over the period were driven by that same fact, that the market needs to to find its level and also the reality that there is pent up demand which the current supply may not be sufficient for.

“And as we ease and satisfy the pent up demand and we begin to see a more efficient market that runs. But you also need to understand the dynamics of pricing in the market.

“So we expect that overtime, sooner rather than later the volatility you are seeing will normalise.

“The role of the CBN is to intervene and keep the market at a fairly stable level. We have our views as to what that level is and as the market continues to oscillate around that level if there is a need for us to either by buying or selling, that is the role of the central bank. We have started intervening and we have been doing it for a while and we will continue to intervene to bring the market to the level that we believe it should be. Right now and in the short run these volatile times are expected but we expect them to moderate sooner rather than later.”