Part 4/6:
Amid these developments, the official exchange rate is reported to have closed around 1,595 naira to the dollar, with indications that it could trend below 1,600 naira. This shift could foreshadow a reduction in exchange rates, increasing the naira’s value against the dollar. Denham predicts that the market could touch these levels by the end of the trading day.
Furthermore, there is an observable narrowing gap in the parallel market, where rates are approximately 1,690 naira to the dollar, down from the previous stable range of about 8,740 naira. This trend suggests that broader market reforms, including the onboarding of licensed Bureau De Change (BDC) operators, are helping stabilize rates and ensure that the exchange reflects more accurately the economic fundamentals.