Naira depreciates to N1,474/$ in parallel market

By Elizabeth Adegbesan

The naira on Friday weakened in the parallel market, sliding to N1,474 per dollar from N1,470 per dollar recorded on Thursday.

However, the local currency appreciated in the Nigerian Foreign Exchange Market (NFEM), strengthening to N1,458 per dollar.

Latest data from the Central Bank of Nigeria (CBN) showed that the official rate improved from N1,459.95 on Thursday, reflecting a N1.95 gain.

With the movement, the gap between the parallel market and NFEM widened to N16 per dollar, up from N10.05 the previous day.

Throughout the week, the naira traded within a wider band in the official market, depreciating by N11 as it fluctuated between N1,447 and N1,459 amid increased dollar demand.

Similarly, in the parallel market, the currency weakened by N4, moving between N1,450 and N1,480 per dollar during the week.

Analysts at Cowry Asset Management Limited said the naira is likely to remain under pressure unless foreign exchange inflows improve significantly.

“Looking ahead, the FX market is likely to maintain a cautious but steady posture, moving in line with the strength and consistency of inflows rather than speculative behaviour. Current market conditions suggest that pricing is being shaped by lighter supply rather than any fundamental shift in sentiment,” the analysts stated.

They added that the gradual buildup in external reserves and continued CBN interventions should help moderate volatility, even as structural supply-demand challenges persist.

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