By Daily Review Online
The naira extended its decline against the United States dollar on Wednesday, weakening to N1,385/$ in the parallel market from N1,380/$ recorded on Tuesday.
The local currency also depreciated in the Nigerian Foreign Exchange Market (NFEM), where the official exchange rate closed at N1,389/$, according to data released by the Central Bank of Nigeria (CBN).
The CBN data showed that the indicative exchange rate rose from N1,373/$ on Tuesday to N1,389/$ on Wednesday, representing a depreciation of N16 for the naira in the official market.
Despite the decline in both segments of the foreign exchange market, the gap between the parallel market rate and the official rate narrowed significantly to N4 per dollar, down from N25 recorded a day earlier.
Meanwhile, trading activity in the official market witnessed a slight increase, with interbank turnover rising by 0.24 per cent to $125.6 million on Wednesday from $125.3 million on Tuesday.
The latest figures highlight the continued pressure on the naira amid efforts by monetary authorities to stabilise the foreign exchange market and improve liquidity.