Naira Depreciates To N1,387 Per Dollar In Parallel Market

The Nigerian naira depreciated to N1,387 per dollar in the parallel market on Thursday, reflecting continued pressure on the country’s foreign exchange market.

According to market data published by Vanguard, the naira weakened from N1,380 per dollar recorded on Wednesday, representing a N7 decline in the black market exchange rate.

The local currency also recorded a marginal depreciation in the Nigerian Foreign Exchange Market (NFEM), where the official exchange rate closed at N1,372.75 per dollar compared to N1,372.5 per dollar the previous trading session. Data from the Central Bank of Nigeria showed the movement reflected a 70 kobo depreciation.

As a result, the gap between the official and parallel market rates widened to N14.25 per dollar from N7.95 previously recorded.

The development highlights the persistent volatility facing Nigeria’s foreign exchange market despite recent monetary policy interventions by the Central Bank of Nigeria.

Market turnover at the interbank foreign exchange market also fluctuated significantly. Reports indicated that transaction turnover declined sharply during the trading period, reflecting reduced liquidity pressures within the market.

In recent months, the naira has experienced alternating periods of appreciation and depreciation amid ongoing economic reforms, foreign exchange adjustments, and changing investor sentiment. Earlier this week, the currency briefly appreciated to N1,385 per dollar before slipping again.

Economic analysts continue to monitor factors influencing the currency, including crude oil prices, foreign reserve levels, inflation, external debt obligations, and the Central Bank’s monetary policy direction.

The continued instability in exchange rates remains a major concern for businesses and import-dependent sectors, as fluctuations directly affect the prices of goods, manufacturing costs, and consumer purchasing power across the country.