The Naira weakened further on Tuesday, sliding to N1,550 per dollar in the parallel market, down from N1,540 recorded on Monday. This marks another round of depreciation, reflecting persistent pressure on Nigeria’s foreign exchange market.
In the official Nigerian Foreign Exchange Market (NFEM), the local currency also lost ground, trading at N1,537 per dollar compared to N1,536.99 the previous day, according to data released by the Central Bank of Nigeria (CBN). Although the official market change was marginal, it underscores continued volatility across both segments.
The latest CBN data shows the naira shed one kobo in the official market, while the parallel market saw a more significant dip of N10 within 24 hours. Analysts attribute this sustained depreciation to strong demand for dollars and limited supply inflows into the market.
As a result, the gap between the parallel market and NFEM rates widened sharply, reaching N13 per dollar on Tuesday, up from just N3.01 on Monday. This growing disparity is raising concerns over arbitrage opportunities and speculative trading activities.
Market experts warn that without decisive policy measures to boost liquidity and restore confidence, the naira may face further downward pressure in the coming weeks, posing inflationary risks for Africa’s largest economy.