The Nigerian Naira has seen a depreciation in the parallel market, falling to N1,739 per dollar on Thursday, a slight decline from N1,735 per dollar reported on Wednesday. This movement reflects ongoing volatility in the foreign exchange landscape.
Conversely, data from the Financial Markets Dealers Quote (FMDQ) revealed a significant appreciation of the Naira in the Nigerian Autonomous Foreign Exchange Market (NAFEM). The currency strengthened to N1,601.2 per dollar, up from N1,654.09 per dollar on Wednesday, marking an impressive gain of N52.89.
In terms of trading volume, the official market experienced a notable increase, with dollar turnover surging by 69 percent to reach $230.99 million, compared to $136.68 million traded the previous day. This uptick suggests heightened activity and interest in the official market, despite the fluctuations in the parallel sector.
Furthermore, the margin between the parallel market and NAFEM rates has widened significantly, increasing to N137.8 per dollar from N80.91 per dollar the day prior. This growing disparity highlights the ongoing challenges within Nigeria’s foreign exchange markets as stakeholders navigate the complexities of currency valuation and trading.
As the situation continues to evolve, market participants are urged to remain vigilant and adapt to the shifting dynamics of the Naira’s performance.