The naira continued its volatile performance on Wednesday, depreciating to N1,635 per dollar in the parallel market, down from N1,625 per dollar recorded on Tuesday. This marks a N10 loss in value within a day.
Since the beginning of May, the local currency has shed about N29 or 1.8 percent in the parallel market, reflecting sustained pressure on the foreign exchange supply and demand dynamics.
In contrast, the naira appreciated slightly in the Nigerian Foreign Exchange Market (NFEM). According to data released by the Central Bank of Nigeria (CBN), the official exchange rate improved to N1,596 per dollar on Wednesday, from N1,599.8 per dollar the previous day—representing a N3.8 gain.
With the opposing movements in the two markets, the gap between the parallel market and official exchange rates widened to N39 per dollar, up from N25.2 per dollar on Tuesday.
The widening margin underscores ongoing market volatility, amid efforts by the CBN to stabilise the naira through policy measures and intervention strategies.
