On October 14, 2024, Nigeria’s Naira appreciated by N10 to N1,680 against the US dollar in the parallel market. In the official NAFEM, it reached N1,552.92, a gain of N88.35. However, dollar turnover in the official market dropped 44%, raising concerns about liquidity and market stability.
The Naira appreciated on October 14, 2024, gaining N10 in the parallel market to trade at N1,680 against the US dollar, a notable improvement from the previous weekend’s rate of N1,690. In the Nigerian Autonomous Foreign Exchange Market (NAFEM), the currency also strengthened significantly, reaching N1,552.92 per dollar, reflecting an appreciation of N88.35 from last week’s rate of N1,641.27.
Despite this positive trend for the Naira, the volume of dollars traded in the official market saw a substantial decline. The total turnover dropped by 44%, falling to $343.71 million from $616.73 million the previous Friday. This decline in market activity raised concerns among stakeholders regarding liquidity levels in the foreign exchange market.
Furthermore, the gap between the parallel market and NAFEM rates widened to N127.08 per dollar, up from N48.73 at the end of last week. This increase highlights the ongoing volatility in the currency exchange landscape.
As the Central Bank of Nigeria continues to monitor the situation, market participants are keenly observing how these fluctuations will impact broader economic conditions and foreign investment.
