Naira appreciates against dollar in parallel market

As of on Monday, the Naira appreciated to N1,725 per dollar in the parallel market, a notable improvement from N1,735 per dollar recorded last Friday.

However, the currency faced a depreciation in the Nigerian Autonomous Foreign Exchange Market (NAFEM), where it fell to N1,676.9 per dollar, up from N1,666.72 per dollar the previous weekend. This marks a decline of N10.18 for the Naira in the NAFEM.

Data from FMDQ indicates that the volume of dollars traded in the official market also saw a significant drop, decreasing by 15.6 percent to $79.47 million, down from $94.2 million traded the prior week.

As a result of these fluctuations, the margin between the parallel market and the NAFEM rate has narrowed to N48.1 per dollar, compared to N68.28 per dollar at the end of last week.

These developments highlight the ongoing volatility in Nigeria’s foreign exchange markets and the challenges facing the Naira amid economic pressures.