Naira Experiences Fluctuations as Parallel Market and NAFEM Rates Diverge
Abuja – Nigerian Naira depreciated in the parallel market, falling to N1,685 per dollar on Tuesday, down from N1,660 per dollar the previous day. This decline highlights the ongoing volatility in Nigeria’s currency valuation.
In contrast, the Naira gained strength in the Nigerian Autonomous Foreign Exchange Market (NAFEM), where it appreciated to N1,561.76 per dollar, compared to N1,635.15 per dollar on Monday. This represents an increase of N73.39 for the Naira, showcasing a significant rebound in this segment of the market.
According to data from FMDQ, the trading volume in the official market surged by an impressive 100.9%, reaching $253.68 million from $126.24 million on Monday. This uptick in trading activity reflects heightened interest and participation in the foreign exchange market.
As a result of these fluctuations, the disparity between the parallel market rate and the NAFEM rate expanded significantly, increasing to N123.24 per dollar from the previous margin of N24.85 per dollar noted on Monday. This development underscores the complexities and challenges facing the Nigerian currency as it navigates through varied market pressures.
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