Naira falls to N1,420/$ in parallel market as official rate gains slightly
By Aboki Forex —
The naira depreciated to N1,420 per dollar in the parallel market yesterday, down from N1,406 per dollar last weekend. This marks a N14 loss for the local currency in the informal segment of the foreign exchange market.
Official market sees marginal gain
In contrast, the naira appreciated in the Nigerian Foreign Exchange Market (NFEM). Data from the Central Bank of Nigeria (CBN) showed that the indicative exchange rate fell to N1,380.5 per dollar from N1,381.7 per dollar last weekend. That represents a N1.2 appreciation for the naira in the official window.
Parallel to official gap widens
As a result, the margin between the parallel market and the official market widened sharply. The gap stood at N39.5 per dollar yesterday, compared to N24.3 per dollar last weekend. This widening spread signals continued pressure on the naira outside the official channel.
Turnover drops in NFEM
Interbank turnover at the NFEM fell by 21.2 percent to N86.13 million yesterday from N71.04 million last weekend. The decline in turnover suggests lower liquidity or reduced activity in the official forex market during the trading session.
For Nigerian businesses and consumers, the widening gap between the two markets means that access to cheaper forex through official channels remains limited, pushing more demand into the parallel market where the naira continues to weaken.