The Naira continued its downward slide on Tuesday, July 18, 2025, as it depreciated to N1,555 per dollar in the parallel market, down from N1,540 per dollar recorded on Monday.
At the Nigerian Foreign Exchange Market (NFEM), the naira also weakened, closing at N1,536 per dollar, a slight dip from N1,535 per dollar the previous day, according to data from the Central Bank of Nigeria (CBN).
Wider Gap Between Official and Parallel Rates
The latest figures show a N1 drop in the official rate, while the parallel market saw a N15 loss in value. As a result, the margin between the official and parallel market rates widened to N19 per dollar, a significant jump from the N5 gap recorded on Monday.
Market Watchers React
Analysts say the widening gap may reflect renewed pressure on dollar demand amid ongoing supply challenges in both official and unofficial markets. There are also concerns over the CBN’s ability to maintain liquidity and manage speculative activity.
Economic Implications
The continued slide in the naira raises concerns about import costs, inflation, and investor confidence, especially with the widening disparity between the two exchange rate windows.
Will the CBN Intervene?
Market participants are now watching to see whether the CBN will step in with policy measures to stabilize the currency or allow further depreciation as part of ongoing forex reforms.
