The naira weakened further against the United States dollar on Wednesday, reflecting continued pressure across both the official and parallel foreign exchange markets.
At the parallel market, the local currency depreciated to about ₦1,490 per dollar, compared with ₦1,470 recorded the previous day. The latest movement highlights sustained demand for foreign exchange amid limited dollar supply in the informal market.
The naira also recorded a mild decline at the Nigerian Foreign Exchange Market (NFEM), where it closed at ₦1,421 per dollar. This represents a ₦5 depreciation from the ₦1,416 exchange rate recorded on Tuesday, according to data published by the Central Bank of Nigeria (CBN).
As a result of the contrasting rates, the spread between the parallel market and the official window widened to ₦69 per dollar, up from ₦54 the previous day. Market watchers say the growing gap reflects persistent distortions in dollar supply and demand across the foreign exchange ecosystem.
Currency analysts note that the pressure on the naira is being driven by a combination of factors, including strong import demand, speculative activity, and cautious dollar inflows. While recent policy measures by the monetary authorities have helped improve transparency at the official window, challenges remain in stabilising the currency across all segments of the market.
The naira’s performance continues to be closely watched by businesses and investors, particularly as exchange rate movements have direct implications for inflation, import costs and overall economic confidence.
