The Nigerian Naira has recorded a significant depreciation against the US dollar in the parallel market, following the Central Bank of Nigeria's (CBN) decision to maintain the country's interest rate.

According to Abubakar Alhasan, a Bureau de Change operator in Wuse Zone 4, the naira exchanged at ₦1,628 per dollar on Tuesday, representing an ₦11 depreciation from Monday's rate of ₦1,617.

This downward trend in the parallel market contrasts with the official foreign exchange market, where the naira made a marginal gain of 0.04 percent, closing at ₦1,598.68 against the dollar on Tuesday compared to ₦1,598.72 the previous day.

The currency fluctuation comes in the wake of the CBN's Monetary Policy Committee's 300th meeting, which retained the Monetary Policy Rate at 27.50 percent. This decision was influenced by Nigeria's easing inflation rate, which stood at 24.23 percent in April 2025.

Despite the recent depreciation in the parallel market, CBN Governor Olayemi Cardoso maintained an optimistic outlook during the MPC press briefing, stating that the naira has become more competitive in recent months.

Financial analysts are closely monitoring these developments as they reflect the ongoing challenges in Nigeria's foreign exchange management amid broader economic reforms.

The divergence between official and parallel market rates continues to be a concern for businesses and investors seeking stability in the foreign exchange market.