The Nigerian naira has depreciated further against the US dollar, closing at N1,341.35/$ at the official foreign exchange market on Thursday, according to data from the Central Bank of Nigeria.
This represents a N3.25 depreciation from the previous day’s rate of N1,338.10/$.
In contrast, the naira showed strength in the parallel market, gaining N25 to trade at N1,340/$, up from N1,365/$ the previous day.
The official window saw increased dollar demand, largely attributed to “risk-off” sentiment among Foreign Portfolio Investors (FPIs).
Market analysts suggest that the naira’s near-term direction will be influenced by supply and demand dynamics, as the Central Bank of Nigeria maintains efforts to stabilize the foreign exchange market.
Key market indicators include:
- NAFEX Rate: N1,338.75/$
- NFEM VWAP: N1,341.35/$
- CBN Closing Rate: N1,346.00/$
The gap between the official and parallel markets remains a concern, with the parallel market trading at a premium.
