Naira falls to N1,413/$ in parallel market as official rate strengthens
By Aboki Forex —
The naira depreciated to N1,413 per dollar in the parallel market yesterday, down from N1,409 per dollar on Tuesday. At the same time, the currency gained ground in the official Nigerian Foreign Exchange Market (NFEM), trading at N1,369 per dollar.
Official rate strengthens, spread widens
Data from the Central Bank of Nigeria (CBN) showed that the indicative exchange rate for the naira fell to N1,369 per dollar from N1,374.5 per dollar on Tuesday. That represents a N5.5 appreciation for the naira in the official market.
As a result, the gap between the parallel and official markets widened to N44 per dollar, up from N34.5 per dollar on Tuesday.
Interbank turnover jumps 29%
Interbank turnover at the NFEM rose sharply by 29 percent to N416.4 million yesterday, compared to N322.7 million on Tuesday.
The increased turnover suggests higher activity in the official window even as demand pressures persist in the parallel market.
What this means for the naira and consumers
The widening spread between the two exchange rates signals continued strain in the parallel market, where many small businesses and individuals still source their dollars. For consumers and businesses reliant on the black market, the cost of imported goods and services is likely to remain elevated. The naira's fragility in the parallel market underscores the persistent demand-supply imbalance that keeps pressure on the currency.