The naira on Friday depreciated to ₦1,495 per dollar in the parallel market, down from ₦1,490 per dollar recorded on Thursday.
Similarly, the local currency weakened at the Nigerian Foreign Exchange Market (NFEM), where it closed at ₦1,421.9 per dollar.
Data from the Central Bank of Nigeria (CBN) showed that the indicative exchange rate rose to ₦1,421.9 per dollar from ₦1,421.5 per dollar on Thursday, representing a 4 kobo depreciation of the naira.
Consequently, the gap between the parallel market and the official market widened to ₦73.1 per dollar, compared with ₦68.5 per dollar the previous day.
On a weekly basis, the naira lost ₦1.4 against the dollar at the official market, while it closed at the same ₦1,495 per dollar level at which it opened in the parallel market.
Meanwhile, analysts at Cowry Asset Management Plc said the naira is likely to remain under pressure in the near term.
In its 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).”
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