Naira Loses at Parallel Market, Exchanges for N1,540/$, Gains at Official Window

The naira yesterday weakened further in the parallel market, trading at N1,540 per dollar, down from N1,525/$ on Tuesday.

However, at the Nigerian Foreign Exchange Market (NFEM), the local currency recorded an appreciation, closing at N1,502.5/$ compared to N1,506.5/$ the previous day.

This represents a gain of N6.5 for the naira at the official window.

Data released by the Central Bank of Nigeria (CBN) confirmed the development, highlighting a widening disparity between the two exchange markets. With the latest movement, the margin between the NFEM and parallel market rates has expanded to N37.5/$, from N18.5/$ on Tuesday.

Analysts say the continued pressure on the naira in the informal market reflects persistent demand for dollars by businesses and individuals, amid limited supply at the official window. The widening gap is also raising concerns among market watchers about speculative trading and potential inflationary effects.

Meanwhile, currency traders (popularly called Bureau De Change operators) in Lagos and Abuja confirmed dollar sales at between N1,535 and N1,540/$ yesterday, attributing the uptick to increased demand from importers and holiday travellers.

The CBN has in recent weeks stepped up interventions to stabilise the market, but pressure on the naira has persisted, with the currency swinging between gains and losses across the different segments.