The Nigerian Naira has continued its downward trend, dropping to N1,770 per dollar in the parallel market on Monday. This marks a significant depreciation compared to its value of N1,750 per dollar recorded over the weekend.
In addition to the parallel market, the Naira also weakened in the Nigerian Autonomous Foreign Exchange Market (NAFEM). According to data from FMDQ, the indicative exchange rate for NAFEM climbed to N1,675.62 per dollar. This reflects a depreciation of N23 from the rate of N1,652.62 per dollar reported last weekend.
Market turnover in NAFEM also saw a dramatic decline. The volume of dollars traded on Monday stood at $108.79 million, representing a sharp 55.2% drop from the $243.05 million recorded last Friday. Analysts attribute the reduced trading volume to persistent volatility and limited dollar supply in the market.
As a result of these developments, the exchange rate gap between the parallel market and NAFEM widened further. The margin increased to N117.38 per dollar from N97.38 per dollar at the end of last week.
