However, the local currency recorded a different movement in the Nigerian Foreign Exchange Market (NFEM), where the official indicative exchange rate stood at N1,329/$.
Data from the Central Bank of Nigeria (CBN) showed that the naira appreciated by N1 in the official market from N1,328/$ recorded on Wednesday.
Gap Between Official and Parallel Markets Narrows
The difference between the parallel-market and official exchange rates narrowed on Thursday.
The gap stood at approximately N41 per dollar, compared with N47/$ recorded on Wednesday.
The narrowing of the gap reflects the slight movement recorded in both markets during the trading period.
Forex Turnover Falls
Meanwhile, trading activity in the Nigerian Foreign Exchange Market declined significantly.
The value of transactions recorded in the NFEM fell by 62.05 per cent, dropping to $105.95 million from $279.2 million recorded on Wednesday.
The latest figures indicate a substantial reduction in the volume of foreign exchange transactions compared with the previous trading session.
Naira Exchange Rate Remains a Key Economic Indicator
Movements in the naira-dollar exchange rate remain important for businesses, consumers and investors because changes in the value of the local currency can affect the cost of imported goods, production inputs and other dollar-denominated transactions.
The difference between official and parallel-market rates is also closely watched as part of developments in Nigeria's foreign exchange market.
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