The Nigerian naira recorded a fresh decline against the United States dollar on Monday, weakening in both the parallel market and the Nigerian Foreign Exchange Market (NFEM) amid continued pressure on the local currency.
In the parallel market, commonly referred to as the black market, the naira depreciated to N1,395 per dollar, compared to N1,390 per dollar recorded last Friday.
The local currency also weakened in the official market, with data released by the Central Bank of Nigeria (CBN) showing that the indicative exchange rate in the Nigerian Foreign Exchange Market rose to N1,373.5 per dollar from N1,372 per dollar at the close of trading last week.
The latest figures indicate a depreciation of N1.5 for the naira in the official window.
As a result of the decline in both segments of the foreign exchange market, the gap between the parallel market rate and the official exchange rate widened further to N21.5 per dollar, up from N19 per dollar recorded at the end of last week.
Meanwhile, activity in the interbank foreign exchange market witnessed a significant increase, with total turnover jumping by 57.3 percent.
According to market data, turnover rose to $76.3 million, compared to $48.5 million recorded during the previous trading session, reflecting increased foreign exchange transactions among market participants.
The latest depreciation comes amid ongoing efforts by monetary authorities to stabilise the foreign exchange market and improve dollar liquidity in the economy.
Financial analysts say fluctuations in exchange rates continue to be influenced by demand pressure, market speculation, foreign currency supply levels, and broader economic conditions affecting Nigeria’s external reserves and investor confidence.
