The naira appreciated to N1,725 per dollar in Nigeria’s parallel market but depreciated to N1,676.9 in the official Nigerian Autonomous Foreign Exchange Market (NAFEM). Turnover in the official market dropped by 15.6%, with the rate gap narrowing.
The naira appreciated in Nigeria’s parallel market, reaching N1,725 per dollar compared to last week's N1,735. However, in the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira showed a slight depreciation, dropping to N1,676.9 per dollar from N1,666.72 last week. Data from FMDQ reveals a decline in dollar trading volume in the official market, where turnover fell by 15.6% to $79.47 million from last week's $94.2 million. The exchange rate gap between the parallel and NAFEM markets also narrowed, standing at N48.1 per dollar, down from N68.28 per dollar previously.
This fluctuation in Nigeria’s currency exchange rates reflects ongoing pressures and adjustments within the country’s foreign exchange dynamics. The contrasting movement between the parallel and official rates highlights challenges in maintaining stability. Financial analysts suggest that fluctuations in the naira’s value underscore the need for consistent foreign exchange policies and measures to boost market liquidity.
The recent changes have had mixed implications for the local economy, with the narrowing of the rate margin suggesting some alignment between parallel and official rates, though depreciation in the official market continues to raise concerns about foreign exchange stability.
The Central Bank’s response, along with policy decisions aimed at addressing these shifts, will be crucial in the coming weeks, as businesses, importers, and investors closely monitor the naira's performance.
