Naira exchange rate pressure continued on Friday as the local currency depreciated to N1,495 per dollar in the parallel market, down from N1,490 per dollar on Thursday.
Similarly, the naira weakened in the Nigerian Foreign Exchange Market (NFEM), closing at N1,421.9 per dollar.
Data from the Central Bank of Nigeria (CBN) showed that the indicative exchange rate rose to N1,421.9 per dollar from N1,421.5 per dollar on Thursday, reflecting a 4 kobo depreciation of the naira.
As a result, the gap between the parallel and official markets widened to N73.1 per dollar, compared with N68.5 per dollar on Thursday, underscoring the growing naira exchange rate pressure in the market.
Over the week, the naira lost N1.4 against the dollar at the official market, while it closed at the same level of N1,495 per dollar at which it opened in the parallel market.
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Meanwhile, analysts at Cowry Asset Management Plc said the naira is likely to remain under strain in the near term.
In their Weekly Financial Market Review, the firm stated:
“The naira is expected to remain under pressure in the near term due to foreign exchange (FX) demand pressures and structural imbalances, though rising external reserves may provide some support.
“Oil prices are likely to remain volatile, driven by geopolitical risks in the Middle East and supply factors related to the Organization of Petroleum Exporting Countries (OPEC).”
The analysts noted that continued FX demand and global oil market uncertainty would sustain naira exchange rate pressure despite recent policy efforts to stabilise the currency.