The Nigerian Naira experienced mixed performance yesterday, with a depreciation in the parallel market while showing strength in the Nigerian Autonomous Foreign Exchange Market (NAFEM).
In the parallel market, the Naira weakened to N1,635 per dollar, down from N1,625 per dollar over the weekend. This depreciation reflects ongoing pressures on the local currency amid economic challenges.
Conversely, the Naira appreciated in the NAFEM, closing at N1,585.77 per dollar, a significant improvement from the N1,598.56 per dollar rate recorded last weekend.
This represents an appreciation of N12.79 for the Naira, showcasing a positive shift in the official exchange market.
According to data from FMDQ, the indicative exchange rate for NAFEM saw this improvement despite a notable decrease in trading volume.
The turnover in the market dropped by 58.8 percent, with only $71.18 million traded, compared to $172.8 million on the previous Friday.
As a result of these changes, the disparity between the parallel market rate and the NAFEM rate widened. The margin increased to N49.23 per dollar, up from N26.44 per dollar last weekend, highlighting the ongoing divergence between the two exchange rates.
This fluctuation in the exchange rates continues to be a topic of concern for businesses and individuals alike, as the wide margin between the parallel and official markets suggests underlying economic uncertainties and liquidity issues in the foreign exchange market.
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