Naira falls to N1,405/$ in parallel market, weakens across all segments
By Aboki Forex —
The naira depreciated to N1,405 per dollar in the parallel market yesterday, down from N1,400 per dollar on Monday. The currency also lost ground in the official Nigerian Foreign Exchange Market (NFEM), where it fell to N1,379 per dollar.
Official market also sees decline
Data from the Central Bank of Nigeria (CBN) showed that the indicative exchange rate for the NFEM rose slightly to N1,379 per dollar from N1,371 per dollar on Monday. This represents an N8 depreciation for the naira in the official segment.
Margin between markets narrows
The gap between the parallel and official markets narrowed to N26 per dollar yesterday, compared with N29 per dollar on Monday. The narrower spread suggests some convergence but reflects continued pressure on the naira across both trading windows.
Trading activity drops sharply
Interbank turnover at the NFEM fell by 24.4 percent to N41.7 million yesterday, down from N54.2 million on Monday. The sharp decline in trading volume points to reduced liquidity and cautious participation by dealers.
For Nigerian businesses and consumers, the sustained weakness of the naira means higher costs for imported goods and raw materials. The narrowing margin between the parallel and official rates offers little relief as the currency struggles to hold ground against the dollar.