The naira on Friday depreciated to N1,538 per dollar in the parallel market, weaker than N1,535\/$ recorded on Thursday.\n<\/p>\n
Similarly, in the Nigerian Foreign Exchange Market, the naira slipped to N1,503.5 per dollar from N1,503\/$ on Thursday, reflecting a 50 kobo depreciation.\n<\/p>\n
Data published by the Central Bank of Nigeria on Friday confirmed the official exchange movement.\n<\/p>\n
Consequently, the margin between the parallel market and NFEM rate stood at N32\/$, unchanged from Thursday.<\/p>\n
For the week, the naira appreciated by N9.5 against the dollar in the official market.\n<\/p>\n
However, in the parallel market, the local currency lost N8, after opening the week at N1,530\/$. <\/p>\n
Nigeria\u2019s economy, heavily reliant on crude oil exports for foreign exchange earnings, is susceptible to global oil price fluctuations.<\/p>\n
A decline in oil prices or a drop in production can significantly reduce the country\u2019s foreign currency inflows. Compounding this issue is a high demand for foreign currency, primarily driven by the need to import raw materials and finished goods, and for a range of services, including international school fees and medical tourism.\n<\/p>\n
Over the years, the CBN has implemented various policies to manage these challenges. These have included a dual-exchange rate system, which the government has recently moved away from in an attempt to unify the official and parallel markets.\n<\/p>\n
Despite these reforms, the parallel market continues to thrive due to a persistent shortage of dollars in the official market, leading individuals and businesses to seek alternative sources.\n<\/p>\n
The current administration\u2019s decision to float the naira has been a major factor in the recent volatility.\n<\/p>\n
This policy, aimed at allowing market forces to determine the currency\u2019s value, has led to a significant\u00a0depreciation.<\/p>\n","protected":false},"excerpt":{"rendered":"The naira on Friday depreciated to N1,538 per dollar in the parallel market, weaker than N1,535\/$ recorded on…\n","protected":false},"author":2,"featured_media":133494,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[84,1294,56,54,55],"class_list":["post-133493","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/133493","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=133493"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/133493\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/133494"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=133493"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=133493"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=133493"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}