The naira weakened against the US dollar across both the parallel and official foreign exchange markets, with the currency falling to N1,382/$ in the parallel market and N1,331.5/$ at the Nigerian Foreign Exchange Market (NFEM).
In the parallel market, the naira declined from N1,378/$ recorded at the end of last week, representing a N4 depreciation against the dollar.
Data from the Central Bank of Nigeria (CBN) also showed a weaker official rate, with the indicative exchange rate moving to N1,331.5/$ from N1,330/$ previously.
The latest NFEM rate represents a N1.50 depreciation in the value of the naira against the dollar.
Market Gap Widens
The movement in both markets widened the gap between the parallel and official exchange rates to N50.50/$, compared with N48/$ at the end of last week.
The wider spread reflects the difference between the rates prevailing in the two segments of Nigeria’s foreign exchange market.
NFEM Trading Activity Falls
Trading activity in the official market also declined sharply during the period.
NFEM turnover fell by 77.7 percent to $24.73 million from $111.06 million previously.
The decline in trading volume came alongside the naira’s marginal depreciation in the official market, highlighting reduced transaction activity as the currency traded at N1,331.5/$.
