The naira experienced mixed movements on Tuesday foreign exchange markets, trading at N1,462 per dollar in the parallel market, up from N1,465 per dollar on Monday, while depreciating to N1,440.89 per dollar in the Nigerian Foreign Exchange Market down from N1,437.50 per dollar.
The parallel market gain indicates a slight strengthening of the currency against the dollar, even as the official market continued to face downward pressure.
Data from the Central Bank of Nigeria showed that the naira lost N3.39 in value in the NFEM, reflecting persistent demand for foreign currency in official channels.
Analysts say this depreciation highlights ongoing pressures from importers and investors seeking dollars amid tight liquidity conditions.
The gap between the parallel and official market rates narrowed yesterday, standing at N21.11 per dollar, down from N27.50 per dollar on Monday.
Market experts suggest that the narrowing margin may signal increased intervention in the official market or a slight easing of speculative activity in unofficial channels.
Traders noted that fluctuations in the naira are being influenced by global economic trends, including oil price movements, as well as domestic factors such as inflation and import demand.
While the parallel market shows modest gains, uncertainty remains as investors watch for signs of stability in the currency.
Economists emphasize that sustaining the naira’s value will require continued policy coordination by the CBN, greater foreign inflows, and stronger export revenues.
For now, the currency’s mixed performance underscores the challenges of balancing the official and parallel exchange rates amid economic pressures.
