Naira Falls to ₦1,340/$ Officially, Hits N1,400/$ in Parallel

The Nigerian naira weakened to N1,340/$ at the official market on Wednesday, up from N1,337/$ recorded on Tuesday, according to data from the Central Bank of Nigeria (CBN).

Intraday trading showed the naira fluctuated between N1,328/$ and N1,340/$, with a simple average rate of N1,337.17/$.

The depreciation was mirrored in the parallel market, where the currency fell to N1,400/$ from N1,382.5/$ the previous day, widening the gap between the official and black market rates to about N60, highlighting persistent segmentation in the foreign exchange market despite ongoing reforms.

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The pressure on the naira coincided with a rebound in the U.S. dollar in global markets following the release of minutes from the U.S. Federal Reserve’s latest policy meeting.

The minutes indicated that policymakers are in no rush to cut interest rates, with some remaining open to further tightening if inflation persists. Subsequently, U.S. Treasury yields rose, and the dollar strengthened against major currencies, consolidating gains against the euro and Japanese yen.

Analysts noted that while productivity gains could help ease inflation, progress may be slow and uneven. Divisions among Federal Reserve officials regarding future rate hikes suggest that monetary policy could remain tight, potentially maintaining upward pressure on emerging market currencies, including the naira.