Naira appreciates to N1,380/$ in parallel market
Naira Sees Mixed Performance in Currency Markets
By Elizabeth Adegbesan
The Nigerian naira appreciated to 1,380 per dollar in the parallel market on Friday, up from 1,390 per dollar the previous day. However, in the Nigerian Foreign Exchange Market (NFEM), the naira depreciated to 1,358.66 per dollar, compared to 1,354.20 per dollar on Thursday, marking a decrease of 4.46 naira.
This fluctuation narrowed the gap between the parallel and official markets to 21.34 naira per dollar, down from 40.80 naira on Thursday.
Throughout the week, the naira weakened by 9.66 naira in the official market, with the number of transactions in the Interbank foreign exchange market dropping by 41.7% to 346 deals, down from 594 the previous week. Additionally, turnover in the interbank foreign exchange market fell by 49.5% to 248.44 million naira, compared to 492.57 million naira the week prior.
Notably, the naira gained 7 naira per dollar in the parallel market this week.
Analysts indicate that the naira’s performance is likely to remain sensitive to ongoing interventions from the Central Bank of Nigeria and changing foreign exchange liquidity conditions. Cowry Asset Management Plc, in its weekly financial market review, noted that while recent gains may suggest short-term stability, persistent challenges such as external debt obligations, weak oil revenues, and foreign portfolio outflows could hinder sustained appreciation of the naira.
