The Nigerian Naira showed slight improvement in value on Tuesday, appreciating to N1,725 per dollar in the parallel market, compared to N1,730 per dollar recorded on Monday. This modest gain reflects increased efforts to stabilize the local currency amid ongoing economic challenges.
Meanwhile, the official exchange rate in the Nigerian Autonomous Foreign Exchange Market (NAFEM) remained steady at N1,672.69 per dollar, indicating no fluctuations in the regulated market.
Data provided by the FMDQ, a key platform for financial markets in Nigeria, revealed that the exchange rate in NAFEM has maintained consistency since the start of the week. This stability may be a result of government measures aimed at controlling exchange rate volatility.
However, the turnover in the foreign exchange market experienced a significant drop. The total volume of dollars traded on Tuesday fell by 18.2 percent, from $254.1 million on Monday to $207.86 million. Experts believe this reduction in trading volume could signal reduced market activity or a temporary lull in demand for foreign currency.
As a result of these developments, the gap between the parallel market rate and the official NAFEM rate narrowed to N52.31 per dollar on Tuesday, compared to N57.31 per dollar the previous day.
