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The Naira appreciated to N1,720 per dollar in the parallel market and N1,671.32 per dollar in the NAFEM market. The official market saw a 124% rise in dollar turnover, though the gap between the parallel and official market rates widened slightly, raising concerns about currency stability.

The Naira strengthened against the US Dollar on Tuesday, reaching N1,720 in the parallel market, up from N1,725 on Monday. This marks a slight but significant improvement in the local currency’s performance, offering some relief to Nigerian traders and consumers amid ongoing economic challenges.

Similarly, the Naira made gains in the Nigerian Autonomous Foreign Exchange Market (NAFEM), where it appreciated N1,671.32 per dollar from N1,676.9 per dollar the previous day. According to data from FMDQ, the indicative exchange rate in the official market showed a N5.58 appreciation, indicating positive movement for the Naira.

Market turnover in the official market also saw a dramatic increase, with the volume of dollars traded rising by over 124% to $218.77 million, up from $79.47 million traded on Monday. This uptick in dollar transactions is reflective of heightened market activity, which may help stabilize the currency further.

However, despite these improvements, the gap between the parallel market and NAFEM exchange rates widened slightly. The margin between the two markets increased to N48.68 per dollar from N48.1 per dollar on Monday, continuing the trend of a notable disparity between the official and parallel market rates.

While the Naira's modest gains offer some optimism, economists are closely monitoring whether this trend will be sustainable or if further adjustments in Nigeria's foreign exchange policies are needed to maintain stability. As the Nigerian economy continues to navigate external pressures and domestic challenges, market players will be looking for sustained positive trends in the value of the Naira.
Airtel Unlimited Data Oct 28th