The Nigerian naira continued to weaken in the parallel market on Friday, reaching a new low of N1,740 per U.S. dollar, down from N1,725 per dollar the previous day. This ongoing depreciation marks a troubling trend for the local currency, which has been under pressure in recent months.
In the official Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira also saw a drop, reaching N1,678.87 per dollar from Thursday’s rate of N1,639.5, indicating a notable depreciation of N49.37 within 24 hours. Data from the Financial Markets Dealers Quotations (FMDQ) confirmed this shift, reflecting the challenges Nigeria faces in stabilizing its exchange rate amid fluctuating dollar demand and supply.
Despite this, the volume of dollar transactions in NAFEM rose sharply. Total turnover jumped 473 percent, with a trading volume of $1.4 billion compared to $244.96 million just a day earlier. This figure represents the highest trading volume seen in years, a significant milestone in Nigeria’s foreign exchange market activity.
The gap between the parallel market rate and the official NAFEM rate narrowed as a result of these shifts, now standing at N61.13 per dollar, compared to the previous difference of N85.5 per dollar. This convergence could signal a potential effort to bridge the exchange rate disparity, though the ongoing depreciation of the naira remains a concern for the country’s economy.
