Naira Weakens to N1,410 per Dollar in Parallel Market Amid Dollar Demand
The Nigerian naira depreciated to N1,410 per dollar in the parallel market on Monday, driven by rising demand for the U.S. dollar, according to Business Day. The currency further weakened to N1,405 the following day, Vanguard News reported.
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The Nigerian naira weakened to N1,410 per U.S. dollar in the parallel market on Monday, reflecting increased demand for the greenback, Business Day reported. The depreciation marks a continuation of pressure on the domestic currency amid persistent foreign exchange shortages.
By Tuesday, the naira had further depreciated to N1,405 per dollar in the same market, Vanguard News reported, citing data from the Central Bank of Nigeria (CBN). This followed a prior level of N1,400 the previous day, indicating sustained downward movement. In the Nigerian Foreign Exchange Market (NFEM), the naira traded at N1,379 per dollar, according to CBN data cited by Vanguard News.
The parallel market has remained a key barometer of the naira’s true value, especially as official exchange rates often diverge from market realities. The recent weakening reflects ongoing challenges in dollar liquidity and investor sentiment toward the local currency. According to Business Day, the renewed dollar demand is the primary driver behind the latest depreciation.
While the Central Bank of Nigeria continues to provide foreign exchange through various channels, including the NFEM, the gap between official and parallel market rates persists, underscoring structural imbalances in the foreign exchange regime. The CBN’s indicative exchange rate data, as reported by Vanguard News, shows limited improvement in stabilizing the naira across all trading platforms.