The naira hit a three-month low of N1,530 per dollar on the parallel market, driven by high demand from travelers and importers. Meanwhile, the official market saw a slight gain, closing at N1,509.67 per dollar.
The naira fell to a three-month low of N1,530 per dollar on the parallel market on Monday, driven by increased demand for the U.S. dollar among end-users. This marks a 0.65% depreciation from Friday's rate of N1,520. The naira was last quoted at N1,570 per dollar on March 19, 2024, according to data from online platforms and street traders.
On the official Foreign Exchange (FX) market, the naira showed some resilience, gaining 0.70% by the end of the trading week on Friday. The dollar was quoted at N1,509.67, down from N1,520.24 on Thursday, according to data from the FMDQ Securities Exchange Limited. The volume of dollars supplied by willing buyers and sellers dropped by 32.64%, from $173.51 million on Thursday to $116.88 million on Friday.
The naira's depreciation on the parallel market highlights ongoing pressures in Nigeria's foreign exchange environment, as demand for the dollar remains robust among travelers and importers. Meanwhile, the official market's modest gains indicate some stabilization efforts. The contrasting performances between the two markets underscore the complexities of Nigeria's foreign exchange dynamics and the challenges faced in maintaining currency stability.
The recent trend and reactions to the naira’s value indicate a significant concern among traders and the general populace, emphasizing the need for strategic economic measures to address the underlying factors driving the demand for foreign currency.