Naira Declines To N1,520/$ In Parallel Market As NAFEM Turnover Surges By 232%

Naira Declines To N1,520/$ In Parallel Market As NAFEM Turnover Surges By 232%

The Nigerian Naira experienced a depreciation in the parallel market on Friday, sliding to N1,520 per dollar from its previous rate of N1,515 per dollar recorded on Thursday. However, in a contrasting move, the Naira appreciated in the Nigerian Autonomous Foreign Exchange Market (NAFEM), reaching N1,482.81 per dollar……CONTINUE READING

According to data from FMDQ, the indicative exchange rate for NAFEM exhibited an improvement, declining to N1,482.81 per dollar from N1,485.66 per dollar the day before, marking an appreciation of N2.85 for the Naira.

The market dynamics showed a fluctuation between an intraday high of N1,511 per dollar and an intraday low of N1,400 per dollar, resulting in a variance of N111 per dollar. Concurrently, the volume of dollars traded (turnover) surged by a significant 35.7 percent, escalating to $556.25 million compared to the previous day’s $167.55 million.

This surge in turnover indicates heightened activity in the NAFEM, potentially driven by various market factors such as increased demand for foreign exchange or speculative trading. However, the widening margin between the parallel market and NAFEM rates is notable, expanding to N37.19 per dollar from the previous day’s N29.34 per dollar.

The disparity between the two rates underscores the continuing challenges faced in maintaining exchange rate stability and managing currency liquidity in Nigeria’s foreign exchange market. While the NAFEM appears to show relative stability, the parallel market reflects the volatility and uncertainty that persist in the broader economic landscape.

As stakeholders monitor these developments, attention remains focused on the effectiveness of monetary policies and interventions aimed at achieving exchange rate stability and fostering economic resilience in Nigeria.