The Nigerian naira recorded further losses against the United States dollar on Wednesday, weakening in both the parallel and official foreign exchange markets.
In the parallel market, the naira exchanged at N1,405 per dollar, compared to N1,389 per dollar on Tuesday, reflecting a depreciation of N16 within 24 hours.
The local currency also declined in the official market. Figures from the Central Bank of Nigeria (CBN) showed that the exchange rate at the Nigerian Foreign Exchange Market (NFEM) settled at N1,361.5 per dollar, down from N1,356.5 per dollar in the previous trading session.
The development represents a N5 decline in the official exchange rate window.
As a result, the difference between the parallel market rate and the official rate expanded to N43.5 per dollar, up from N32.5 per dollar recorded a day earlier.
Trading activity in the official market also dropped significantly during the session. Total turnover fell by 56.8 per cent, closing at $54.3 million, compared to $125.7 million recorded on Tuesday.
Market analysts attributed the naira’s continued weakness to persistent demand pressures in the foreign exchange market and liquidity challenges, while investors continue to monitor policy initiatives aimed at improving currency stability.
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