The Naira has made a slight improvement in the parallel market, rising to N1,730 per dollar on Thursday, up from N1,740 per dollar the previous day. This marks a small recovery for the local currency in the informal exchange market.
However, the situation is different in the Nigerian Autonomous Foreign Exchange Market (NAFEM), where the Naira experienced a decline.
According to data from the FMDQ, the indicative exchange rate for the Naira in NAFEM rose to N1,650.2 per dollar from N1,645.4 per dollar, reflecting a depreciation of N4.8. This shows the continued pressure on the Naira, especially in the official foreign exchange market.
The trading volume in the market also saw a decline, dropping by 9.33% to $214.73 million, compared to the $236.84 million that was traded the previous day. This decrease in dollar turnover suggests that market activity has slowed down, possibly due to reduced demand or other economic factors.
As a result of these shifts, the gap between the rates in the parallel market and NAFEM has narrowed. On Wednesday, the margin was N94.6 per dollar, but it dropped to N79.8 per dollar on Thursday, showing that the difference between the two markets is becoming smaller.
