The foreign exchange market closed Friday on a weaker note as sustained demand for dollars outweighed supply throughout the trading session.
Market activity remained strong, with demand skewed to the bid side, putting upward pressure on exchange rates. As a result, the naira depreciated across official reference rates at the close of trading.
The Nigerian Foreign Exchange Market (NFEM) Volume Weighted Average Price weakened by ₦4.97 to settle at ₦1,346.32 per dollar, while the Central Bank of Nigeria’s closing rate also depreciated by ₦2.00 to close at ₦1,348.00 per dollar.
Analysts attributed the late weakness to stronger demand relative to available supply, which kept pressure on the local currency into the close.
In the absence of major shocks, market participants expect trading to remain largely range-bound in the near term, with movements continuing to reflect demand and supply conditions.