Naira Falls to N1,403 per Dollar in Parallel Market Amid Forex Pressure
The Nigerian naira depreciated further in the parallel foreign exchange market, closing at N1,403 per United States dollar, reflecting sustained pressure on the country’s foreign exchange market.
The latest movement in the exchange rate comes amid persistent demand for foreign currency by businesses, importers and individuals, despite ongoing efforts by monetary authorities to stabilise the forex market and improve liquidity.
Market operators attributed the depreciation to increased demand for dollars and limited foreign exchange supply in the informal market, factors that continue to influence exchange rate fluctuations.
Analysts noted that while policy reforms introduced by the monetary authorities have improved transparency in the official foreign exchange market, volatility remains in the parallel market due to supply constraints and speculative activities.
Economic experts believe that strengthening foreign exchange inflows through increased oil production, non-oil exports, foreign direct investment and diaspora remittances will be critical to supporting the naira and reducing pressure on the domestic currency.
They also stressed the need for sustained fiscal and monetary policy coordination to boost investor confidence, improve liquidity and ensure long-term stability in Nigeria’s foreign exchange market.
Despite recent fluctuations, financial analysts remain optimistic that ongoing economic reforms and improved foreign exchange earnings could gradually strengthen the naira if consistently implemented.
The exchange rate remains a key indicator for businesses, investors and consumers, as movements in the value of the naira continue to influence inflation, import costs and overall economic activity across the country.
