The naira declined further against the US dollar in both the parallel and official markets as rising forex demand and limited supply continued to exert pressure on the local currency.
On Wednesday, the naira fell to N1,570/$1, down from N1,565/$1 recorded on Tuesday to reflect a sustained depreciation trend since the beginning of the week.
The local currency, which opened trading at N1,560/$1 in the parallel market on Monday, has continued to weaken amid growing concerns over foreign exchange market liquidity.
Official Market Trends
The naira also weakened in the official market, closing at N1,502.00/$1 on Monday before depreciating further to N1,513.10/$1 by Tuesday.
Trading data from the official window on Tuesday showed the currency exchanging at N1,498.78/$1 (buying) and N1,499.78/$1 (selling).
Despite the Central Bank of Nigeria’s (CBN) efforts to stabilize the naira through various policy interventions, speculative trading, high forex demand and liquidity concerns continue to weigh on the local currency.
Performance Against Other Currencies
The depreciation trend was not limited to the US dollar, as the naira also lost ground against the British pound and the euro in the parallel market.
The exchange rates for the past three days indicate sustained volatility across major currencies:
| Date |
GBP (Parallel Rate) |
Euro (Parallel Rate) |
| 10-Feb-25 |
N1,955.00 |
N1,620.00 |
| 11-Feb-25 |
N1,950.00 |
N1,595.00 |
| 12-Feb-25 |
N1,975.00 |
N1,600.00 |
Analysts suggest that the local currency remains under pressure despite CBN’s policy measures, as underlying factors such as dollar scarcity, speculative activity and concerns over foreign exchange inflows persist.
Market watchers anticipate continued volatility in the near term unless forex supply improves significantly or the central bank adopts additional measures to ease pressure on the exchange rate.
