The Naira appreciated to N1,580 per US dollar in the parallel market on August 12, 2024, up from N1,585. In the Nigerian Autonomous Foreign Exchange Market, the rate fell to N1,570.99 from N1,574.20. The trading volume decreased by 23.7%, widening the gap between market rates.
On August 12, 2024, the Nigerian Naira appreciated to N1,580 per US dollar in the parallel market, up from N1,585 per dollar reported over the weekend. This rise reflects a notable improvement in the Naira's value in informal trading environments.
In the Nigerian Autonomous Foreign Exchange Market (NAFEM), the Naira also gained strength. The exchange rate dropped to N1,570.99 per dollar, down from N1,574.20 per dollar last Friday. This shift represents a 3.21 Naira appreciation, according to data from the FMDQ.
Despite these gains, the volume of dollars traded in the market saw a significant decrease. The total trade volume fell by 23.7 percent, from $323.11 million last weekend to $246.44 million. This drop in trading volume might indicate a reduction in market liquidity or a shift in trading patterns.
Additionally, the margin between the parallel market rate and the NAFEM rate expanded to N10.8 per dollar from N9.01 per dollar. This widening gap suggests increased volatility and divergence in exchange rates between the formal and informal markets.
Economic analysts will be closely watching these developments, as fluctuations in exchange rates can impact inflation, purchasing power, and overall economic stability. The Naira's recent performance highlights ongoing challenges and opportunities in Nigeria's foreign exchange landscape.
![Today's Naira Rate[16-11-2024]: Nigerian Naira Faces Steep Decline, Parallel Market Hits N1,750/$](/data/attachments/210/210283-5e995ef978efd380c57591c54b3dddf2.jpg?hash=FHqxQvjPSE)
