The Naira continued its downward trend on Wednesday, depreciating to N1,585 per dollar in the parallel market, down from N1,565 per dollar the previous day. Similarly, in the Nigerian Foreign Exchange Market (NFEM), the currency weakened to N1,546 per dollar, reflecting persistent pressure on the local currency.
According to data from the Central Bank of Nigeria (CBN), the official indicative exchange rate for the naira climbed to N1,546 per dollar from N1,537 per dollar on Tuesday, marking a N9 depreciation. This decline signals ongoing volatility in the forex market, despite recent interventions by the apex bank to stabilize the currency.
The widening gap between the parallel market and NFEM rates has raised concerns among analysts and businesses. The margin between the two markets expanded to N39 per dollar from N37 per dollar the previous day, reflecting a growing disparity in exchange rate access.
Traders attribute the naira’s depreciation to increased demand for dollars, limited forex supply, and speculative trading. “There’s a lot of pressure on the market as businesses and individuals scramble for scarce dollars,” a currency trader in Lagos noted.
