Naira appreciates to N1,725/$ in parallel market, declines in official forex market

The Nigerian Naira appreciated in the parallel market yesterday, trading at N1,725 per dollar, up from N1,735 per dollar last Friday.

However, in the Nigerian Autonomous Foreign Exchange Market (NAFEM), the Naira experienced a depreciation, closing at N1,676.9 per dollar compared to N1,666.72 per dollar the previous week, indicating a decline of N10.18.

According to FMDQ data, the volume of dollars traded in the official market dropped significantly by 15.6%, with turnover decreasing from $94.2 million to $79.47 million. This shift caused the exchange rate gap between the parallel and official NAFEM markets to narrow, reducing the margin to N48.1 per dollar from N68.28 per dollar last weekend.

These fluctuations highlight ongoing volatility in Nigeria’s foreign exchange markets amid demand pressures and limited dollar supply.