The naira fell 1.2% to ₦1,641.27 on Friday as FX market turnover hit a six-month high of $616.73 million, up 323.69% from the previous day.
It also weakened in the parallel market, trading at ₦1,700 per dollar.
The naira continued to weaken on Friday, losing 1.2% to close at ₦1,641.27 per dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM).
This decline coincided with a surge in foreign exchange (FX) market turnover, which hit $616.73 million, a six-month high and a 323.69% increase from the previous day.
The spike reflected growing demand for foreign currency.
Throughout the week, the naira struggled in both the official and parallel markets.
In the parallel market, the naira dropped to ₦1,700 per dollar on Friday, down from ₦1,665 the previous week, highlighting ongoing depreciation.
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The Central Bank of Nigeria (CBN) has intervened multiple times this year to stabilize the naira, selling $10,000 to Bureau De Change (BDC) operators earlier in the year.
The latest intervention on September 26 saw the CBN sell $20,000 to BDCs at a rate of ₦1,590 per dollar.
However, despite these efforts, the naira continues to face pressure due to high foreign exchange demand.
Analysts believe that increased oil production and government tax relief measures may reduce naira volatility in the near term.
Yet, global oil prices and economic challenges could still impact the currency’s future performance.
The naira’s continued depreciation remains a key concern for Nigeria’s economy.
