Naira appreciates to N1,376/$ in parallel market

By Elizabeth Adegbesan

The Naira today appreciated to N1,376 per dollar in the parallel market, the same threshold as the official market rate, from N1,387 per dollar on Thursday.

But the naira depreciated to N1,375 per dollar in the Nigerian Foreign Exchange Market, NFEM .

Data from the Central Bank of Nigeria, CBN, showed that the indicative exchange rate for the market rose to N1,375 per dollar from N1,372.5 per dollar on Thursday, reflecting N2.5 depreciation for the naira.

Consequently, the margin between the parallel and official markets narrowed to N1 per dollar from N14.25 per dollar on Thursday.

The turnover in the interbank foreign exchange market declined by 46.3 percent to $62.34 million from $116.04 million the previous day.

However, analysts at CowryAsset Management Limited, in their weekly financial outlook, have projected the naira to remain under soft pressure in near term due to continuous foreign exchange (FX) demand.

“Looking ahead, the naira may remain under mild pressure in the near term due to persistent FX demand, though rising external reserves could help cushion volatility.”

Vanguard News

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