The naira continued to slide on Friday, exchanging at N1,495 per dollar in the parallel market, slightly weaker than Thursday’s N1,490.
In the official Nigerian Foreign Exchange Market (NFEM), the local currency also lost ground, closing at N1,421.9 per dollar compared with N1,421.5 on Thursday—a small 4 kobo depreciation, but enough to widen the gap between the official and parallel rates to N73.1 per dollar from N68.5.
Over the week, the naira shed about N1.4 against the dollar at the official market, while holding steady in the parallel market at N1,495 per dollar.
Experts at Cowry Asset Management Plc warn that the naira may stay under pressure in the coming days. According to their Weekly Financial Market Review, strong demand for foreign currency and structural imbalances in the economy are keeping the naira on edge.
“While rising external reserves might offer some support, the naira is likely to feel the heat,” Cowry analysts noted. They added that oil price volatility, influenced by geopolitical tensions in the Middle East and OPEC supply factors, could further affect the currency.
For Nigerians, this means keeping a close eye on both the parallel and official exchange rates, as the gap between the two continues to widen.
