The Nigerian currency, the naira, depreciated further against the United States dollar at the official foreign exchange market on Thursday, closing at ₦1,341.35/$, according to data released by the Central Bank of Nigeria (CBN).
The latest figure represents a ₦3.25 drop compared to the ₦1,338.10/$ recorded on Wednesday at the official window.
Data from the apex bank also showed mixed performance across key FX benchmarks during the trading session, reflecting sustained demand pressures in the market.
Increased Dollar Demand
Market activity at the official window was largely driven by increased dollar demand, attributed to risk-off sentiment among Foreign Portfolio Investors (FPIs).
The heightened demand tilted transactions toward the bid side, exerting pressure on the naira.
- NAFEX Rate: Depreciated by ₦2.08 to settle at ₦1,338.75/$.
- NFEM VWAP: Declined by ₦3.24 to close at ₦1,341.35/$.
- CBN Closing Rate: Dropped by ₦6.00 to end the day at ₦1,346.00/$.
Intraday trading saw the naira fluctuate between a high of ₦1,350.00/$ and a low of ₦1,332.00/$, underscoring volatility in the market.
Parallel Market Movement
In contrast, the naira recorded gains at the parallel market, appreciating by ₦25 to trade at ₦1,340/$1, compared to ₦1,365/$1 previously.