By Joyce Ekeh
The naira weakened further in the parallel foreign exchange market on Friday, falling to N1,378 per dollar from N1,370 on Thursday, as the gap between the unofficial and official exchange rates widened.
In the Nigerian Foreign Exchange Market (NFEM), the local currency also depreciated marginally, with the indicative exchange rate moving to N1,330 per dollar from N1,329 the previous day, according to data from the Central Bank of Nigeria (CBN).
The latest movement pushed the spread between the parallel and official markets to N48 per dollar, up from N41 on Thursday.
The parallel-market rate means the dollar was selling for N48 more in the unofficial market than at the official NFEM rate, reflecting a wider divergence between the two segments of the foreign exchange market.
At the official market, activity also increased, with turnover rising by 4.82 per cent to $111.06 million from $105.95 million recorded on Thursday.
The marginal weakening of the naira at both markets comes amid continued activity in the foreign exchange market, with the official rate remaining below the parallel-market quotation.
The CBN data showed that the naira lost N1 at the NFEM window during the period under review, while the parallel-market rate moved by N8 against the local currency.
The widening rate differential could increase the cost of accessing dollars outside the official market, with implications for businesses and individuals whose transactions are exposed to foreign exchange movements.
Market developments will continue to be closely watched as participants assess dollar supply, demand and trading activity across the official and parallel segments.
