The naira has experienced another significant depreciation against the US dollar, with the parallel market exchange rate now hovering around N1,745/$1. This marks a sharp decline from the sub-N1,600 levels recorded in recent weeks.
As of Wednesday morning, exchange rates ranged between N1,715/$1 and N1,745/$1 on various platforms. Stock trading apps like Bamboo and Trove quoted rates at N1,730/$1 and N1,736/$1, respectively.
In contrast, the official exchange rate closed at approximately N1,525/$1 on Tuesday, its strongest level since the Enhanced Foreign Exchange Market (EFEM) was introduced.
This widening gap of nearly N200 between the official and parallel market rates underscores growing concerns over the stability of the naira.
Market analysts speculate that the latest depreciation may be driven by speculators holding firm despite the Central Bank of Nigeria's (CBN) efforts to implement a more robust trading platform.
In its bid to curb inflation and stabilize the naira, the CBN has consistently increased the monetary policy rate.
However, the recent sharp fluctuations suggest persistent challenges in bridging the gap between official and black-market exchange rates.
The temporary recovery in the naira's value last week, now deemed a "dead cat bounce" in financial terms, highlights the volatility of Nigeria's currency market amidst ongoing economic pressures.
