Naira Depreciates to N1,362/$ in Parallel Market Amid Rising Interbank Activity

The Nigerian Naira has depreciated to N1,362 per dollar in the parallel market, a decline from N1,357 recorded on Monday. This movement underscores the ongoing volatility in Nigeria's currency landscape, as the Naira's performance diverges significantly between the parallel and official markets.

In contrast, the official Nigerian Foreign Exchange Market (NFEM) reported an appreciation of the Naira, which rose to N1,331.5 per dollar from N1,332.9 the previous day. The Central Bank of Nigeria (CBN) data indicates a marginal improvement in the official rate, with a N1.4 appreciation.

The widening gap between the parallel and official exchange rates has now reached N30.5 per dollar, an increase from the N24.1 margin seen on Monday. This disparity reflects the challenges facing the Naira as it navigates through various economic pressures and market sentiments.

Additionally, the interbank turnover in the NFEM experienced a substantial surge, jumping by 334.8 percent to $313.6 million from $72.12 million. This significant rise in trading activity may suggest heightened interest and volatility in the currency market as investors react to the fluctuating exchange rates.

“The recent shifts in the Naira's value highlight the complexities of Nigeria’s foreign exchange situation, as both the parallel and official markets continue to reflect contrasting trends,” noted an economic analyst.