By Dennis Okechukwu
The naira depreciated to N1,420 per dollar in the parallel market on Monday, weakening from N1,406/$ recorded last weekend.
However, the local currency posted a marginal gain in the Nigerian Foreign Exchange Market (NFEM), where it appreciated to N1,380.5/$ from N1,381.7/$, according to data released by the Central Bank of Nigeria (CBN).
The CBN figures indicate that the official exchange rate improved by N1.2, reflecting a slight appreciation of the naira in the formal market.
As a result of the divergent movements in both markets, the gap between the parallel market and the official exchange rate widened to N39.5 per dollar, up from N24.3 recorded at the close of trading last weekend.
Meanwhile, activity in the official foreign exchange market slowed, with interbank turnover declining by 21.2 per cent to $86.13 million, compared with $71.04 million at the end of last week.