Naira Dips at Official Window to N1,421.06/$1, Stable at Parallel Market at N1,450

On Wednesday, Nigeria's official market witnessed a decline in the value of the naira, while the parallel market remained stable. 

The Nigerian Autonomous Foreign Exchange (NAFEM) window recorded a closing rate of N1,421.06/$1, which was a decline of N4.49 compared to the previous rate of N1,416.57/$1 on Tuesday. 

The parallel market, on the other hand, closed at N1,450/$1, which remained unchanged from the previous day. It is worth noting that the official exchange rate was about N30 lower than the parallel market rate. 

The daily turnover of foreign exchange transactions recorded an increase of 2.47% on Wednesday, with $164.74 million worth of transactions compared to $160.77 million on Tuesday. This is an indication that there was an increase in demand for foreign exchange on Wednesday. 

Furthermore, the highest spot rate observed on Wednesday was N1,440, while the lowest spot rate recorded was N1,335. These figures imply that the naira's value was volatile during the day, with a high level of fluctuation in the exchange rate. 

The decline in the official market is a cause for concern for the Nigerian economy, as it could lead to higher prices for imported goods, inflation, and other macroeconomic challenges. The Central Bank of Nigeria has been striving to stabilize the exchange rate and improve the value of the naira in recent years, but the COVID-19 pandemic and other economic challenges have made this a difficult task.