- Naira Trades at ₦1,364/$ Officially, ₦1,407/$ on Parallel Market
The Nigerian naira weakened against the United States dollar on Tuesday, trading at ₦1,364/$ in the official Nigerian Foreign Exchange Market (NFEM) and ₦1,407/$ in the parallel market, reflecting sustained demand for foreign exchange across both formal and informal trading windows.
Data released by the Central Bank of Nigeria (CBN) showed that the indicative NFEM exchange rate depreciated to ₦1,364 per dollar, compared with ₦1,361/$ recorded at the close of the previous trading session, representing a ₦3 decline in the value of the local currency.
In the parallel market, commonly referred to as the black market, the naira also weakened to ₦1,407 per dollar, from ₦1,400/$ at the end of last week, highlighting persistent pressure on foreign exchange demand outside the official market.
The latest movement widened the gap between the official and parallel market rates to ₦43 per dollar, up from ₦39 recorded previously, suggesting that while reforms in the foreign exchange market have narrowed the premium over the past year, demand continues to outpace supply in the informal market.
Trading activity at the official market also slowed significantly. Interbank turnover at the NFEM fell by 55.5 per cent to US$39.6 million, down from US$89.03 million in the previous session, indicating softer liquidity in the market.
The naira’s latest performance comes amid continued efforts by the Central Bank to stabilise the foreign exchange market through policy reforms aimed at improving price discovery, boosting liquidity and attracting foreign capital.
Market analysts say exchange rate movements in the coming days will largely depend on foreign exchange inflows, importer demand and the CBN’s liquidity management strategy, as businesses continue to monitor currency stability for pricing, import costs and investment decisions.
