Naira weakens in parallel market
On Tuesday, the Naira depreciated to N1,600 per dollar in the parallel market, a decline from the N1,590 per dollar observed over the weekend. In contrast, the Naira showed a positive trend in the Nigerian Autonomous Foreign Exchange Market (NAFEM), where it appreciated to N1,579.22 per dollar. This is a notable improvement from the N1,579.89 per dollar reported last Friday, reflecting a gain of 67 kobo.
NAFEM serves as the trading segment for investors, exporters, and end-users, where foreign exchange transactions are conducted at rates determined by prevailing market conditions. According to data from the FMDQ, the indicative exchange rate for NAFEM saw a slight increase due to improved trading volumes. The volume of dollars traded surged by 41.4 percent, rising to $162.99 million from $115.23 million over the weekend.
As a result of these fluctuations, the gap between the parallel market rate and the NAFEM rate expanded significantly to N20.78 per dollar, compared to N10.11 per dollar last Friday. This widening margin reflects increased volatility and divergence between the two exchange rate markets.
