The Naira today depreciated to N1,474 per dollar in the parallel market from N1,470 per dollar on Thursday.
However, the naira appreciated to N1,458 per dollar in the Nigerian Foreign Exchange Market (NFEM).
Data published by the Central Bank of Nigeria, CBN, showed that the exchange rate for the naira fell to N1,458 per dollar from N1,459.95 per dollar on Thursday, indicating N1.95 appreciation for the naira.
As a result, the margin between the parallel market and NFEM rate widened to N16 per dollar from N10.05 per dollar on Thursday.
The naira moved within a wider band this week, recording N11 depreciation in NFEM. The local currency fluctuated between N1,447 and N1,459 at the official market following increased dollar demand.
Similarly the naira weakened by N4 this week trading between N1,450 and N1,480 per dollar in the parallel market.
In their weekly financial market outlook, analysts at CowryAsset Management Limited said the naira might
continue to face a series of pressure unless inflows improve meaningfully.
“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, meaning the naira may
continue to face bouts of pressure unless inflows improve meaningfully.
“However, the gradual buildup in external reserves and sustained CBN interventions should provide a measure of stability, helping to temper volatility even as structural demand-supply gaps persist.”
Leave a Reply