Naira weakens in parallel market, gains at official window – Reports

Keep up with the latest news and be part of our weekly giveaways and airtime sharing; follow our WhatsApp channel for more updates. Click to Follow us

The naira on Thursday depreciated to N1,552 per dollar at the parallel market, slipping from N1,546/$1 recorded on Wednesday.

In contrast, the local currency appreciated at the Nigerian Foreign Exchange Market (NFEM), trading at N1,533 per dollar compared to N1,537.20/$1 on Wednesday, according to official data published by the Central Bank of Nigeria (CBN). This represents a modest gain of N4.20 for the naira at the official window.

For further information, read more details here

As a result, the gap between the parallel market rate and the NFEM widened significantly to N19 per dollar, up from N8.80 recorded the previous day.

A currency dealer in Lagos explained, “What we are seeing is the typical volatility in the FX market, where demand pressures at the street level are creating depreciation, while tighter liquidity management by the CBN is supporting stability in the official window.

Another trader added, “The widening spread is not unusual, but it reflects the persistent demand-supply imbalance. Many importers and individuals still rely heavily on the parallel market due to limited access to official allocations.”

Market analysts believe the mixed performance underscores the fragile balance in Nigeria’s FX market. They say that while CBN interventions continue to strengthen the official window, persistent pressure from unmet dollar demand is weighing on the parallel market.

“The real test will be how consistently the apex bank can sustain supply at the NFEM while also narrowing the gap with the parallel market. Investors and businesses are closely monitoring these dynamics,” one financial analyst noted.

Please don’t forget to “Allow the notification” so you will be the first to get our gist when we publish it. 
Drop your comment in the section below, and don’t forget to share the post