The Nigerian naira depreciated further in the parallel market, hitting N1,550 per U.S. dollar amid heightened demand for foreign exchange. This marks a decline from the N1,500 level it maintained for over two weeks, despite the Central Bank of Nigeria’s (CBN) ongoing foreign exchange reforms.
Officially, the naira closed at N1,512 per dollar on Thursday, reflecting a widening gap between the official and unofficial markets. Analysts, including Financial Derivatives Company CEO Bismarck Rewane, attribute the naira’s weakness to an imbalance between demand and supply.
Investor sentiment remains fragile as foreign portfolio outflows from the Nigerian stock market totaled N455.62 billion in 2024, surpassing total inflows. Market experts cite exchange rate volatility and inflation concerns as key factors driving investor hesitation.
With the naira’s instability persisting, economic stakeholders are closely watching for potential policy adjustments that could restore confidence in Nigeria’s currency and financial markets.
