The Nigerian naira weakened further in the parallel market yesterday, trading at N1,420 per US dollar, down from N1,406 recorded over the weekend.
This represents a N14 loss in the informal segment, reflecting sustained demand for foreign currency outside regulated channels.
Slight Recovery in Official Window
In the official Nigerian Foreign Exchange Market (NFEM), the naira posted a modest gain. The indicative exchange rate improved to N1,380.5 per dollar from N1,381.7 the previous weekend, showing a small appreciation of N1.2.
However, the gap between the parallel and official markets widened noticeably to N39.5 per dollar, compared to N24.3 over the weekend. This growing disparity highlights the ongoing pressure on the naira in the informal segment, where many businesses and individuals source dollars when official supply is limited.
Trading Activity Declines
Interbank turnover at the NFEM fell by 21.2% to N86.13 million, indicating lower liquidity and reduced trading activity during the session.
For businesses and consumers, the wider spread between the two markets means continued difficulty accessing cheaper foreign exchange through official routes, often forcing reliance on the more expensive parallel market. This situation could contribute to higher costs for imports and business operations in the near term.
The latest movement underscores the mixed conditions in Nigeria’s foreign exchange market, where official interventions provide some stability while informal demand continues to exert upward pressure on the naira.
