Naira appreciates to N1,510/$ in parallel market

The Nigerian currency, Naira, experienced a mixed performance in the foreign exchange market yesterday, appreciating in the parallel market and depreciating in the Nigerian Autonomous Foreign Exchange Market (NAFEM).

According to data from FMDQ, the Naira strengthened to N1,510 per dollar in the parallel market, a N5 appreciation from its previous rate of N1,515 per dollar last week Friday. On the other hand, the Naira depreciated to N1,508.99 per dollar in NAFEM, a N3.69 depreciation from its previous rate of N1,505.3 per dollar.

There was a 34.9 percent drop in the volume of dollars traded in the market. The trading volume decreased from $122.31 million from $187.82 million last week Friday. This decline in trading volume may have contributed to the narrowing of the margin between the parallel market and NAFEM rates, which reduced to N1.01 per dollar from N9.7 per dollar last weekend.

The mixed performance of the Naira may be attributed to various factors including changes in global economic conditions and domestic demand for foreign exchange. The Central Bank of Nigeria has been working to stabilize the currency and maintain a stable exchange rate through various measures, including interventions in the foreign exchange market.

As the economy continues to evolve, investors and businesses will be closely monitoring the currency’s performance and its impact on trade and investment decisions.