Naira Appreciates to N1,725/$ in Parallel Market

By Aaior K. Comfort

The Nigerian Naira appreciated in the parallel market, rising to N1,725 per dollar yesterday from last week’s rate of N1,735. However, it showed a contrasting trend in the Nigerian Autonomous Foreign Exchange Market (NAFEM), where it depreciated to N1,676.9 per dollar, compared to N1,666.72 per dollar last Friday.

According to data from FMDQ, the indicative exchange rate for NAFEM marked a depreciation of N10.18, highlighting the currency’s continued volatility. In addition, the volume of dollars traded in the official market fell by 15.6%, with turnover reducing from $94.2 million to $79.47 million.

As a result of these fluctuations, the gap between the parallel market and the NAFEM rate narrowed, now standing at N48.1 per dollar, down from N68.28 per dollar the previous week. This narrowing margin reflects ongoing adjustments as Nigeria continues to manage its foreign exchange landscape.