At the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira depreciated slightly to N1,350 per dollar on Monday, November 9, compared with N1,349 recorded on Friday, November 6, according to Central Bank of Nigeria (CBN) data.
The parallel market recorded a sharper decline, with Bureau De Change (BDC) operators quoting the dollar at N1,383 on Tuesday, up from N1,380 the previous day.
Gap Between Official and Parallel Market Rates Widens
The difference between the official and parallel market exchange rates widened as the naira weakened more significantly in the informal segment.
With the dollar quoted at N1,350 at NAFEM and N1,383 on the parallel market, the exchange rate gap stood at N33 per dollar. The widening gap highlights persistent differences in foreign exchange supply and demand across the two market segments.
While the official market recorded only a marginal depreciation, the parallel market experienced stronger pressure, with the dollar becoming more expensive for buyers.
Naira Weakens Against Pound and Euro
The naira also lost ground against the British pound and euro in the parallel market, although it recorded a marginal gain against the Canadian dollar.
The pound sterling rose to N1,857 from N1,852, representing a N5 increase or 0.27% depreciation of the naira, euro appreciated to N1,553 from N1,545, an N8 increase equivalent to a 0.52% depreciation of the local currency.
However, the Canadian dollar declined to N978 from N980, representing a N2 reduction or a 0.20% appreciation of the naira.
Nigeria’s Foreign Reserves Decline to $55.06 Billion
Nigeria’s external reserves also recorded a decline, adding to the developments in the foreign exchange market. CBN data showed that gross external reserves stood at $55.060 billion as of November 6, down from $55.133 billion recorded on November 5.
This represents a decline of $73 million, or approximately 0.13%
