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Naira Depreciates Further To N1,341.35/$ At Official FX Market - CHANNELS TV
The Nigerian currency—the naira—slid further against the United States dollar (USD) at the official foreign exchange market on Thursday, according to data from the Central Bank of Nigeria.
CBN data showed that the naira closed at N1,341.35 to the US dollar at the official window, compared to N1,338.10/$ reported on Wednesday, representing a N3.25 depreciation.
In contrast, the Nigerian currency showed strength in the parallel market (black market), gaining N25 to trade at N1,340/$1, up from the previous rate of N1,365/$1.
Market Dynamics, Pressure
The official window saw an increased dollar demand during the trading session, largely attributed to “risk-off” sentiment among Foreign Portfolio Investors (FPIs).
The increased demand tilted the market towards the bid side, exerting pressure on the naira across official benchmarks.
* NAFEX Rate: Depreciated by N2.08 to settle at N1,338.75/$.
* NFEM VWAP: Fell by N3.24 to close at N1,341.35/$.
* CBN Closing Rate: Declined by N6.00, ending the day at N1,346.00/$.
Throughout the session, intraday trades fluctuated between a high of N1,350.00 and a low of N1,332.00.
Market analysts suggest that the naira’s near-term direction will continue to be influenced by the prevailing dynamics of supply and demand as the apex bank maintains its efforts to stabilise the foreign exchange market.
