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Naira Down to N1,403/$ in Parallel Market
🇳🇬 Nigeria /Economy & Trade

Naira Down to N1,403/$ in Parallel Market

From Vanguard · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Documents & data Ongoing story
  • The Naira depreciated to N1,403 against the dollar in the parallel market on Wednesday, down from N1,385 the previous day.
  • In the Nigerian Foreign Exchange Market (NFEM), the Naira also weakened, closing at N1,371.4 per dollar, a depreciation of N2.4 from Wednesday.
  • The gap between the parallel and official exchange rates widened to N31.6 per dollar, while interbank turnover at NFEM fell by 4.9 percent.

Nigeria's Naira continued its downward trend, depreciating to N1,403 against the U.S. dollar in the parallel market on Wednesday. This marks a decline from N1,385 per dollar recorded the previous day, signaling ongoing pressure on the local currency.

Similarly, the Naira weakened in the Nigerian Foreign Exchange Market (NFEM), closing at N1,371.4 per dollar. Data from the Central Bank of Nigeria (CBN) indicated a depreciation of N2.4 for the Naira in this official window, compared to N1,369 per dollar on Wednesday.

The widening disparity between the parallel and official exchange rates is a significant concern. The margin increased to N31.6 per dollar on Wednesday, up from N16 per dollar the day before. This divergence often reflects market sentiment and liquidity challenges.

Further data from the NFEM showed a decrease in interbank turnover, which fell by 4.9 percent to N85.5 million yesterday from N90.3 million the previous day. This reduction in trading volume could indicate cautious market participation amid the currency's volatility.

DistantNews Editorial

Originally published by Vanguard in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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