The Nigerian naira has weakened to N1,405 per dollar in the parallel foreign exchange market, according to market reports.
The development reflects renewed pressure on the local currency in the parallel market, where exchange rates are influenced by the availability of foreign currency and demand from individuals and businesses seeking dollars.
The movement in the parallel-market rate comes amid continued efforts by the Central Bank of Nigeria (CBN) to improve liquidity in the foreign exchange market and strengthen the naira.
The exchange rate remains a key concern for households and businesses because movements in the value of the naira against the dollar can affect the cost of imported goods, raw materials, machinery and other products.
A weaker naira also has implications for inflation and operating costs, particularly for businesses that depend heavily on imported inputs.
Market operators continue to monitor developments in the official and parallel foreign exchange markets, with the gap between different market rates remaining an important indicator of foreign-exchange demand and supply conditions.
The latest movement is expected to keep attention focused on the CBN’s foreign-exchange policies and measures aimed at achieving greater stability in the currency market.
