Naira appreciates against dollar in parallel market

The Naira saw mixed fortunes in the foreign exchange markets yesterday, appreciating in the parallel market but experiencing depreciation in the Nigerian Autonomous Foreign Exchange Market (NAFEM).

In the parallel market, the Naira appreciated to N1,715 per dollar, up from N1,725 per dollar recorded last weekend, reflecting a slight gain for the local currency.

However, in the NAFEM, the Naira depreciated to N1,603.16 per dollar from N1,600.78 per dollar last Friday, marking a N2.38 decline. Data from FMDQ showed this drop as indicative of the pressure on the official exchange rate.

On a positive note, dollar trading volume in the official market grew by 2.4%, with $359.22 million traded, up from $350.72 million last weekend.

As a result of these market shifts, the gap between the parallel market and NAFEM rates narrowed to N111.84 per dollar from N124.22 per dollar recorded last Friday. The exchange rate dynamics continue to reflect market volatility amid ongoing economic adjustments.