The Naira weakened further in the parallel market on Monday, trading at N1,665 per dollar, down from N1,660/$ recorded over the weekend. This marks a continuation of the currency’s struggles in the unofficial market.
However, in the official Nigerian Foreign Exchange Market (NFEM), the Naira showed slight improvement, appreciating to N1,534.56 per dollar from the previous rate of N1,535/$ last Friday, according to data released by the Central Bank of Nigeria (CBN). This represents a 44-kobo gain for the Naira in the official window.
Widening Gap Between Official and Parallel Markets
The margin between the parallel market and NFEM rates widened to N130.44 per dollar, compared to N125/$ over the weekend. This growing disparity highlights the ongoing pressure on Nigeria’s foreign exchange system, as demand for dollars in the unofficial market remains high amid limited supply in the official window.
Market analysts point to persistent economic uncertainties, inflationary pressures, and forex scarcity as key factors driving the parallel market rate higher. As the margin continues to expand, businesses and individuals relying on forex for imports and international transactions face increased costs.
Efforts by the CBN to stabilize the official market appear to be yielding some results, but challenges remain in narrowing the gap between the two exchange rates.
