Naira strengthens in parallel market despite official market dip

The naira strengthened to N1,403 per dollar in the parallel market on Friday from N1,407 on Thursday, while weakening slightly in the official market, as reported by Vanguard.

According to the Central Bank of Nigeria, the indicative exchange rate at the Nigerian Foreign Exchange Market fell to N1,337/$ from N1,336/$.

The development narrowed the gap between both markets to N66/$ from N71/$.

Meanwhile, NFEM turnover dropped 31.8 per cent to $130.7m from $191.7m.

Analysts at Cowry Asset Management expect the naira’s near-term outlook to remain positive, citing improved FX liquidity and continued reserve accumulation, although weaker oil prices and geopolitical risks remain concerns.