The Nigerian naira recorded a depreciation against the US dollar across both official and parallel foreign exchange markets on Friday, ending the week on a negative note despite previous gains.
According to data from the Central Bank of Nigeria (CBN), the naira fell to ₦1,528.56 per dollar in the official market on Friday, down from ₦1,525.83 recorded on Thursday. This represents a ₦2.73 depreciation on a day-to-day basis.
The parallel market, commonly known as the black market, also witnessed a similar trend as the naira weakened to ₦1,570 per dollar on Friday from ₦1,560 the previous day, marking a ₦10 decline.
Weekly Performance Analysis
Despite Friday's depreciation, BenriNews reports that the naira had actually recorded four consecutive days of appreciation against the dollar earlier in the week, highlighting the currency's recent volatility in the foreign exchange market.
This latest development comes amid ongoing efforts by monetary authorities to stabilize the naira and address persistent foreign exchange challenges facing Africa's largest economy.
Market analysts suggest that various factors including liquidity constraints, demand pressures, and broader macroeconomic conditions continue to influence the naira's performance in both the official and parallel markets.
The CBN has implemented several measures in recent months aimed at improving foreign exchange liquidity and reducing the gap between official and parallel market rates, though challenges persist.
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