In the parallel market, the naira depreciated to N1,415 per dollar, down from N1,405 recorded at the close of trading last Friday.
A similar trend was observed in the official market, where the currency weakened at the Central Bank of Nigeria-backed Nigerian Foreign Exchange Market (NFEM). Data released by the apex bank showed that the indicative exchange rate rose to N1,386.75 per dollar, compared to N1,384.25 per dollar in the previous trading session—representing a depreciation of N2.5.
Exchange Rate Gap Expands
As both segments of the market moved in the same direction, the spread between the parallel market and the official window widened further.
The margin increased to N28.25 per dollar, up from N20.75 per dollar recorded last weekend, underscoring persistent disparities in forex pricing and liquidity conditions across the two markets.
Market Pressures Persist
The latest movement highlights ongoing demand pressures in the foreign exchange market, with analysts pointing to tight dollar liquidity and sustained demand from importers and other market participants as key drivers of the naira’s weakness.
The widening gap between official and parallel market rates also suggests continued inefficiencies in forex supply, despite recent efforts by monetary authorities to stabilise the currency.
Market watchers say the trajectory of the naira in the coming weeks will depend largely on liquidity inflows, policy direction, and broader macroeconomic conditions.