The Nigerian naira weakened against the United States dollar on Wednesday, posting losses in both the official and parallel foreign exchange markets amid a significant decline in trading activity.
In the parallel market, the naira depreciated to ₦1,405 per dollar, compared to ₦1,389 per dollar recorded on Tuesday, reflecting renewed pressure on the local currency.
The official market also recorded a slight decline, with the naira closing at ₦1,361.5 per dollar in the Nigerian Foreign Exchange Market (NFEM), down from ₦1,356.5 per dollar a day earlier.
Data released by the Central Bank of Nigeria (CBN) showed that the official exchange rate weakened by ₦5, indicating a modest depreciation of the local currency against the dollar.
As a result, the gap between the official and parallel market rates widened to ₦43.5 per dollar, up from ₦32.5 per dollar recorded on Tuesday.
The latest figures suggest that the relative stability witnessed in recent weeks may be facing fresh pressure as demand for foreign exchange continues to influence market movements.
Meanwhile, trading activity at the official market dropped sharply during the session.
Reports indicate that interbank turnover in the NFEM fell by 56.8 per cent, declining from $125.7 million on Tuesday to $54.3 million on Wednesday.
The significant reduction in transaction volume comes despite ongoing efforts by monetary authorities to improve liquidity and maintain stability within the foreign exchange market.
Market analysts say reduced trading volumes can sometimes contribute to exchange rate volatility, particularly when demand for foreign currency remains elevated.
While authorities continue to implement reforms aimed at improving market efficiency and attracting foreign exchange inflows, participants remain focused on liquidity conditions and broader economic factors influencing the value of the naira.
Exchange Rate Snapshot (June 18, 2026)
• Parallel market rate: ₦1,405/$
• Official NFEM rate: ₦1,361.5/$
• Gap between official and parallel markets: ₦43.5/$
• NFEM turnover: $54.3 million
Foreign exchange rates may vary across banks, Bureau De Change operators and other market participants depending on transaction size, location and prevailing market conditions.
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