Business: Naira Depreciates Further, Sheds ₦3.25 At Official FX Market
In contrast, the Nigerian currency showed strength in the parallel market (black market), gaining ₦25 to trade at ₦1,340/$, up from the previous rate of ₦1,365/$.
The Nigerian currency — the naira — slid further against the United States dollar (USD) at the official foreign exchange market on Thursday, according to data from the Central Bank of Nigeria.
READ ALSO: Naira Falls To N1,340/$ Despite CBN Intervention
CBN data showed that the naira closed at ₦1,341.35 to the US dollar at the official window, compared to ₦1,338.10/$ reported on Wednesday, representing a ₦3.25 depreciation.
In contrast, the Nigerian currency showed strength in the parallel market (black market), gaining ₦25 to trade at ₦1,340/$1, up from the previous rate of ₦1,365/$1.
Market Dynamics, Pressure
The official window saw an increased dollar demand during the trading session, largely attributed to “risk-off” sentiment among Foreign Portfolio Investors (FPIs).
The increased demand tilted the market towards the bid side, exerting pressure on the naira across official benchmarks.
* NAFEX Rate: Depreciated by ₦2.08 to settle at N1,338.75/$.
* NFEM VWAP: Fell by ₦3.24 to close at ₦1,341.35/$.
* CBN Closing Rate: Declined by ₦6.00, ending the day at ₦1,346.00/$.
Throughout the session, intraday trades fluctuated between a high of ₦1,350.00 and a low of ₦1,332.00.
Market analysts suggest that the naira’s near-term direction will continue to be influenced by the prevailing dynamics of supply and demand as the apex bank maintains its efforts to stabilise the foreign exchange market.
