Naira falls to N1,367/$ in parallel market as NFEM turnover jumps 219%

The naira depreciated to N1,367 per dollar in the parallel market from N1,363 on Thursday. It also weakened to N1,370 per dollar in the Nigerian Foreign Exchange Market, NFEM, according to Central Bank of Nigeria, CBN, data.

The official indicative exchange rate rose to N1,370 per dollar from N1,365 per dollar on Thursday, indicating a N5 depreciation for the naira.

Parallel and official gap widens

The margin between the parallel market and the official market widened to N3 per dollar from N2 per dollar on Thursday. The naira closed lower in both markets as demand for foreign exchange remained visible in the data.

NFEM turnover jumps 219%

The value of interbank turnover in NFEM increased by 219 per cent to $1.01 billion from $316.6 million on Thursday. The higher turnover came as the naira slipped in the official market.

Analysts expect pressure to persist

Financial analysts expect the naira to remain depreciated. In their weekly financial review and outlook, analysts at Cowry Asset Management said: "Going forward, the naira is expected to remain under pressure amid persistent demand for foreign exchange and prevailing market uncertainties, although the modest increase in external reserves could provide some support for currency stability."

The N3 gap between the parallel and official rates shows the two markets are close, but the naira remains weak. The Cowry outlook points to persistent FX demand and market uncertainty as key risks, with external reserves providing only modest support.