On Monday, the Nigerian Naira experienced a small but notable rise in the parallel market, trading at N1,725 per dollar, marking an improvement from its previous rate of N1,735 per dollar at the end of last week. This appreciation in the parallel market reflects a mild recovery, though challenges remain as the Naira continues to face pressures in various segments of the exchange markets.
In contrast, the Naira showed a slight depreciation within the Nigerian Autonomous Foreign Exchange Market (NAFEM), where it traded at N1,676.9 per dollar. This was a decrease from last weekend’s rate of N1,666.72, according to data from the FMDQ. The NAFEM rate decline indicates a loss of N10.18 for the Naira in the official market setting.
Alongside this fluctuation, the volume of dollars traded in NAFEM saw a reduction. Total dollar turnover fell by 15.6%, dropping from $94.2 million last Friday to $79.47 million. This decrease in trade volume may reflect cautious investor behavior amidst ongoing currency volatility.
As a result of these shifts, the exchange rate margin between the parallel market and the NAFEM rate has reduced. It now stands at N48.1 per dollar, a decrease from the previous gap of N68.28 last weekend.
