Naira weakens midweek, trades at N1,570/$1 in parallel market  

The naira depreciated to N1,570/$1 on Wednesday from N1,565/$1 on Tuesday.

The trend shows that the naira has been on a downward spiral since Monday when it traded at N1,560/$1 in the parallel market.

A Bureau De Change (BDC) operator in Wuse Zone 4, Abuja, confirmed the price movements to Naijaonpoint, citing increased demand for the greenback and limited supply as key drivers of the depreciation.

In the official market, the naira also experienced a decline. It closed at N1,502.00/$1 on Monday and weakened further to N1,513.10/$1 by Tuesday.

Additionally, trading data from Tuesday showed that the currency exchanged at N1,498.78/$1 (buying) and N1,499.78/$1 (selling), reflecting continued pressure on the exchange rate.

The naira’s depreciation was not limited to the US dollar, as it also lost ground against the British pound and the euro in the parallel market. The exchange rates for these currencies over the past three days are as follows:

The naira’s decline against major currencies signals sustained volatility in the foreign exchange market. Analysts suggest that while the Central Bank of Nigeria (CBN) has introduced various policies to stabilize the naira, persistent forex demand pressures, speculative trading, and concerns over liquidity continue to weigh on the local currency.

Market watchers predict that the naira may face further depreciation in the short term unless there is significant intervention from the apex bank or an improvement in forex liquidity. Factors such as foreign portfolio inflows, external reserves management, and government policies will be key determinants of the currency’s future direction.

CBN Governor, Olayemi Cardoso, declared that there would be harsh consequences for any violations of the recently introduced Nigeria Foreign Exchange (FX) Code. He reaffirmed the Central Bank’s commitment to upholding ethical behavior and transparency in Nigeria’s foreign exchange market.