Naira strengthens to N1,380 per dollar on the black market

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By Elizabeth Adegbesan

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The Naira on Friday appreciated to N1,380 per dollar in the parallel market from N1,390 per dollar the previous day.

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However, the naira depreciated to N1,358.66 per dollar in the Nigerian Foreign Exchange Market, NFEM.

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Data from the Central Bank of Nigeria, CBN, showed that the indicative exchange rate for the naira rose to N1,358.66 per dollar from N1,354.2 per dollar on Thursday, reflecting N4.46 depreciation for the naira.

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Consequently, the margin between the parallel and official markets narrowed to N21.34 per dollar from N40.8 per dollar on Thursday.

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This week, the naira weakened by N9.66 per dollar in the official market, with the number of deals in the Interbank foreign exchange market falling by 41.7 percent to 346 deals from 594 deals the previous week.

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Similarly, the turnover for the interbank foreign exchange market declined by 49.5 percent to N248.44 million from N492.57 million the previous week.

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But the naira strengthened by N7 per dollar in the parallel market.

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Analysts projected the naira to remain sensitive to continued Central Bank interventions and evolving foreign exchange liquidity conditions in the near term.

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Cowry Asset Management Plc, in their weekly financial market review for this week, said: “In the near term, the naira is expected to remain sensitive to continued Central Bank interventions and evolving foreign exchange liquidity conditions.
“While recent gains suggest some short-term stability, persistent pressure from external debt obligations, weak oil revenue accretion, and foreign portfolio outflows may limit sustained appreciation.”

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