Naira falls to N1,422/$ in parallel market as official rate gains

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The naira weakened in the parallel market on Thursday, trading at N1,422 per dollar, down from N1,415 per dollar on Wednesday. Meanwhile, the official Nigerian Foreign Exchange Market (NFEM) saw the naira appreciate slightly to N1,381 per dollar.

Parallel market rate drops

According to data from the Central Bank of Nigeria (CBN), the naira depreciated by N7 in the parallel market, moving from N1,415 to N1,422 per dollar. This marks a continued divergence between the two exchange rate windows.

Official market gains ground

On the official side, the naira appreciated by N2.5, with the indicative exchange rate falling to N1,381 per dollar from N1,383.5 per dollar on Wednesday. The CBN data confirmed the slight improvement in the NFEM rate.

Spread widens between markets

The gap between the parallel and official market rates widened to N41 per dollar, up from N31.5 per dollar the previous day. This growing margin reflects persistent demand pressure in the parallel market.

Interbank turnover jumps

Interbank turnover at the NFEM surged by 68.7 per cent to N205.4 million on Thursday, compared to N121.7 million on Wednesday. The sharp increase suggests higher activity in the official window.

For Nigerian businesses and consumers, the widening spread between the two markets signals continued strain on the naira. Importers and small-scale traders who rely on the parallel market face higher costs, which could feed into consumer prices in the coming days.

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