Naira Depreciates Further To N1,341.35/$ At Official FX Market
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.
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/$1.
The official window saw an increased dollar demand during the trading session, largely attributed to “risk-off” sentiment among Foreign Portfolio Investors (FPIs).
The increased demand tilted the market towards the bid side, exerting pressure on the naira across official benchmarks.
* NAFEX Rate: Depreciated by ₦2.08 to settle at N1,338.75/$.
* 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.
