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The Nigerian Naira experienced a depreciation in the parallel market, dropping to N1,410 per dollar from N1,395 per dollar last weekend.
In contrast, the Nigerian Foreign Exchange Market (NAFEM) witnessed the Naira appreciating to N1,354.21 per dollar from N1,400.4 per dollar last Friday, indicating a significant improvement in the official market exchange rate.
According to data from FMDQ, the indicative exchange rate for NAFEM showed an appreciation of N46.19 for the Naira.
The market recorded an intraday high of N1,441 per dollar and an intraday low of N1,285 per dollar, resulting in a margin of N156 per dollar.
The turnover in the market decreased by 58 percent to $84.83 million from $201.88 million traded the previous day.
As a result of these developments, the margin between the parallel market and NAFEM rates widened to N55.79 per dollar from N5.4 per dollar last Friday.
This significant gap between the two markets highlights the ongoing challenges faced by the Nigerian economy in maintaining a stable exchange rate.
The recent fluctuations in the Naira’s value can be attributed to several factors, including the country’s dependence on oil exports, foreign exchange demand, and the global economic environment.
As the government and central bank continue to implement measures to stabilize the currency and boost the economy, market participants and stakeholders will be closely monitoring the situation to see if the Naira can maintain its recent gains in the NAFEM.
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