The Nigerian naira weakened further in the parallel market on Tuesday, trading at N1,585 per US dollar, a decline from N1,570 per dollar recorded on Monday. This depreciation highlights ongoing pressures in the informal foreign exchange segment.
Conversely, the naira showed resilience in the Nigerian Foreign Exchange Market (NFEM), where it appreciated to N1,527 per dollar from N1,532 per dollar on Monday, according to data released by the Central Bank of Nigeria (CBN). This indicates a N5 gain for the naira in the official market.
The divergence between the parallel and official rates has widened significantly, with the margin expanding to N58 per dollar from N38 per dollar the previous day. This growing gap reflects persistent market segmentation and underlying liquidity challenges.
Market analysts suggest that while the official market benefits from CBN interventions aimed at stabilizing the currency, speculative activities and supply-demand imbalances continue to exert downward pressure on the naira in the parallel market. The widening disparity underscores the need for comprehensive reforms to unify exchange rates and enhance market efficiency.
The CBN continues to monitor the situation closely, with hopes that ongoing policy measures will gradually restore stability and confidence in Nigeria’s foreign exchange environment.
