The Naira experienced a slight appreciation in the parallel market yesterday, improving to N1,745 per dollar from Tuesday’s rate of N1,755 per dollar. This movement marks a positive shift for Nigeria’s local currency in the informal exchange market.
Meanwhile, the story was different in the Nigerian Autonomous Foreign Exchange Market (NAFEM), where the Naira weakened.
Data from FMDQ, a leading financial market platform, revealed that the indicative exchange rate in NAFEM rose to N1,660.83 per dollar, compared to Tuesday’s rate of N1,659.44 per dollar. This change reflects a depreciation of N1.39 for the Naira.
In addition to these rate fluctuations, the volume of dollar transactions in NAFEM saw a significant decline. The total turnover of dollars traded dropped by 20.8%, from $425.98 million on Tuesday to $337.07 million yesterday.
This reduced activity has narrowed the exchange rate margin between the parallel market and NAFEM. The difference now stands at N84.17 per dollar, compared to the wider margin of N95.56 per dollar recorded on Tuesday.
