The naira slips to ₦1,413 per dollar in the parallel market on Wednesday, July 22, sliding further from ₦1,409 the day before. Strangely, the official market told a completely different story, showing that the naira actually strengthening to ₦1,369 per dollar on the Nigerian Foreign Exchange Market.
That divergence widened the gap between both markets to ₦44 per dollar, up from ₦34.5 the previous day. It is part of a fluctuating pattern seen throughout the week, with the naira also reaching ₦1,422 and ₦1,425 in the parallel market on other days.
Meanwhile, the interbank market saw a notable spike in activity, with the Nigerian Foreign Exchange Market (NFEM) turnover jumping 29% to ₦416.4 million from ₦322.7 million. Analysts also point to importer demand, particularly petroleum transactions, as a key driver behind the parallel market’s continued pressure.
One currency dealer has explained the psychology behind the split: panic buying accelerates whenever people sense the naira losing value, further fueling the very depreciation they’re trying to escape. For the meantime, the CBN’s official rate keeps improving while everyday street transactions tell a different, tougher story.
