Naira Weakens Slightly as Official Exchange Rate Falls to N1,385/$, Gap with Parallel Market Widens

The Nigerian naira recorded a marginal decline against the United States dollar in the official foreign exchange market, with the exchange rate slipping to N1,385 per dollar, according to the latest data released by the Central Bank of Nigeria (CBN).

Figures from the CBN showed that the indicative exchange rate at the Nigerian Foreign Exchange Market (NFEM) depreciated from N1,384/$ at the close of last week to N1,385/$, representing a N1 loss for the local currency.

The latest movement also widened the gap between the official and parallel foreign exchange markets. The spread increased to N9 per dollar, compared to N2 per dollar recorded at the end of last week, reflecting renewed pressure on exchange rate convergence.

Despite the slight depreciation, trading activity in the official market witnessed a significant boost. Data from the CBN indicated that total interbank turnover at the Nigerian Foreign Exchange Market rose sharply by 80.3 per cent.

The value of transactions increased to 223.9 million dollars, up from 124.2 million dollars recorded during the previous trading session, suggesting stronger market participation and improved liquidity.

Analysts continue to monitor developments in the foreign exchange market as monetary authorities sustain efforts aimed at improving liquidity, stabilising the naira and narrowing the gap between the official and parallel markets.

The performance of the naira remains a key indicator for investors, businesses and importers, with exchange rate movements expected to influence inflation, trade costs and overall economic activity in the coming weeks.