Nigeria Naira Drops to N1,230/$ in Parallel Market, Inches Up to N872.59/$ Officially

The Nigerian Naira faced contrasting fates in currency markets. The parallel market recorded a depreciation, with the naira sliding to N1,230 per dollar, a slight dip from N1,225 per dollar the previous week. On the other hand, in the official Nigerian Foreign Exchange Market (NAFEM), the naira experienced an unexpected upswing, appreciating to N872.59 per dollar. Data from FMDQ indicated a notable drop in the indicative exchange rate for NAFEM, marking a N13.29 appreciation for the naira.

Despite this positive development in the official market, the disparity between the official and parallel market rates widened to N357.41 per dollar, underscoring the challenges faced by the naira in informal trading circles. The volume of dollars traded on the official market window also witnessed a notable surge, jumping by 39 percent to $127.93 million, compared to the $92.16 million traded in the preceding weekend. As Nigeria grapples with this fluctuating currency landscape, economic analysts are closely monitoring the widening gap and its potential implications for businesses and consumers alike.