NAIRA DEPRECIATES TO N1,367/$ IN PARALLEL MARKET

The naira weakened against the US dollar on Friday, trading at ₦1,367 in the parallel market compared with ₦1,363 on Thursday.

The movement represents a ₦4 decline in the value of the Nigerian currency.

The naira also lost ground in the Nigerian Foreign Exchange Market, where the indicative exchange rate moved from ₦1,365 to ₦1,370 per dollar, according to Central Bank of Nigeria data.

This marked a ₦5 depreciation in the official market.

The difference between the two market rates widened from ₦2 to ₦3 per dollar, with the official rate higher than the parallel-market rate.

Meanwhile, the value of foreign exchange traded in the official market rose sharply. Interbank turnover increased by 219 per cent to $1.01 billion, up from $316.6 million on Thursday.

Despite the increase in trading activity, analysts at Cowry Asset Management expect the naira to remain under pressure.

In their weekly review and outlook, they pointed to persistent demand for foreign exchange and market uncertainty as factors likely to weigh on the currency.

However, they noted that a modest increase in Nigeria’s external reserves could provide some support for exchange-rate stability.