The naira continued its depreciation on Friday, slipping to N1,665 per dollar in the parallel market, down from N1,645 recorded on Thursday.
A similar decline was observed in the official foreign exchange market, where the naira weakened to N1,544.5 per dollar compared to the previous day’s rate of N1,542 per dollar, marking a N2.5 drop.
Data released by the Central Bank of Nigeria (CBN) highlights the growing disparity between the rates in the parallel market and the Nigerian Foreign Exchange Market (NFEM). The margin between the two exchange rates widened to N120.5 per dollar on Friday, compared to N103 per dollar on Thursday.
The ongoing depreciation underscores persistent pressure on the naira amid increasing demand for foreign currency and supply constraints, further emphasizing the challenges in Nigeria’s foreign exchange management.
As the naira continues to lose value, concerns grow over its potential impact on inflation and the cost of imported goods and services. Analysts suggest that decisive monetary and fiscal measures may be needed to stabilize the currency and bridge the gap between the official and parallel market rates.
