Naira Parallel Rate Climbs to N1,380 as Official‑Parallel Gap Shrinks to N21.34
Naira parallel rate rises to N1,380/USD, official rate slips to N1,358.66/USD, spread narrows to N21.34, interbank activity falls sharply.
TL;DR: The naira traded at N1,380 per dollar in the parallel market, up from N1,390 the prior day, while the official rate moved to N1,358.66 per dollar. The spread between the two rates fell to N21.34, down from N40.80 on Thursday.
Context
The Central Bank of Nigeria continues to intervene in the foreign exchange market to manage volatility. Interbank activity has weakened, with the number of deals dropping and turnover falling sharply week‑on‑week. Oil revenues remain below target, and external debt service pressures persist, influencing the naira’s outlook.
Key Facts
- Parallel market: N1,380/USD (appreciation of 0.7% from N1,390/USD). - Official market: N1,358.66/USD (depreciation of 0.33% from N1,354.20/USD). - Spread: N21.34/USD, down 48% from N40.80/USD on Thursday. - Interbank deals: 346, a 41.7% decline from 594 the previous week. - Interbank turnover: N248.44 million, down 49.5% from N492.57 million. - Parallel market gain: N7 per dollar stronger week‑on‑week. - Market data: USD/NGN ticker shows the above moves; total NGX market cap stands at roughly NGN 22 trillion.
What It Means
The narrowing gap suggests that CBN interventions are temporarily aligning parallel and official rates, but thin interbank liquidity limits sustained stability. Analysts note that short‑term steadiness hinges on continued FX inflows, while long‑term appreciation faces headwinds from debt repayments, weak oil receipts, and portfolio outflows.
Watch for the CBN’s next auction schedule and any shifts in crude oil export revenues, as these will determine whether the naira can hold its recent gains or face renewed pressure.
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