The Naira strengthened against the dollar on Wednesday in Nigeria’s parallel market, trading at N1,695 per dollar, an improvement from Tuesday’s rate of N1,725 per dollar. This marks a notable appreciation of the local currency amid ongoing adjustments in the country’s foreign exchange dynamics.
In contrast, the Naira remained steady in the Nigerian Autonomous Foreign Exchange Market (NAFEM), maintaining a rate of N1,672.69 per dollar. Data from the Financial Market Dealers Quotations (FMDQ) platform revealed that the Naira’s exchange rate has stayed stable since Monday, coinciding with the start of live trading on Bloomberg’s BMatch System.
Dollar trading volume also saw a rise, increasing by 4.4% to reach $216.99 million on Wednesday, up from $207.86 million recorded on Tuesday. The growing volume indicates improved liquidity and market activity.
As a result, the gap between the parallel market rate and the NAFEM rate narrowed significantly, shrinking to N22.31 per dollar from Tuesday’s margin of N52.31 per dollar.