Naira depreciates to N1,367/$ in parallel market

*Interbank turnover rises 219%

By Elizabeth Adegbesan

The naira today depreciated to N1,367 per dollar from N1,363 in the parallel market on Thursday.

Similarly, the naira depreciated to N1,370 per dollar in the Nigerian Foreign Exchange Market, NFEM.

Data from the Central Bank of Nigeria, CBN, showed that the indicative exchange rate for the naira rose to N1,370 per dollar from N1,365 per dollar on Thursday, indicating N5 depreciation for the naira.

Consequently, the margin between the parallel and official markets widened to N3 per dollar from N2 per dollar on Thursday.

The value of interbank turnover in NFEM increased by 219 per cent to $1.01 billion from $316.6 million on Thursday.

However, financial analysts expect the naira to remain depreciated.

In their weekly financial review and outlook, analysts at Cowry Asset Management said: “Going forward, the naira is expected to remain under pressure amid persistent demand for foreign exchange and prevailing market uncertainties, although the modest increase in external reserves could provide some support for currency stability.”