Naira slides marginally at official market, strengthens at parallel market

The Nigerian naira continued its weakening trend at the official foreign exchange market on Wednesday, marking the third consecutive day of depreciation against the US dollar.

According to data published by the Central Bank of Nigeria (CBN), the naira closed at N1,549.26/$1 on Wednesday, down slightly from N1,549.04/$1 recorded the previous day.

This reflects a marginal drop of N0.22, signaling persistent pressure on the local currency in the regulated segment of the market.

Despite the dip in the official market, the naira showed signs of recovery in the parallel, or black market. The currency gained N5 against the dollar, strengthening to N1,590/$1 from Tuesday’s rate of N1,595/$1.

This divergence between the official and black markets underscores the prevailing volatility and mixed investor sentiment in Nigeria’s foreign exchange environment.

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Earlier in the week, on both Monday and Tuesday, the naira had also recorded losses in the official market, but maintained relative stability in the black market.

Market analysts attribute the fluctuations to ongoing demand and supply imbalances, as well as lingering uncertainty surrounding monetary policy direction.

The Central Bank continues to implement reforms aimed at achieving exchange rate convergence and stability, but currency traders and investors remain cautious.

With the naira posting mixed performances across both markets, stakeholders are closely watching for further policy cues from the CBN to determine the outlook for the local currency in the near term.