Naira Hits Record Low of N1,565/$ in Parallel Market

The Nigerian Naira reaches an all-time low of N1,565 against the US dollar in the parallel market. Learn about the causes and potential economic impact of this currency depreciation.

The Naira saw a minor upturn in the parallel market on the previous day, with an increase to N1,565 per dollar as opposed to last Friday’s rate of N1,585 per dollar.

In contrast, the Nigerian Autonomous Foreign Exchange Market (NAFEM) recorded a depreciation of the Naira against the dollar to N1,548.76 from its earlier rate of N1,500.32 per dollar during that week.

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The indicative exchange rate for NAFEM displayed a depreciation trend as evidenced by a significant decrease of N48.44, according to data obtained from FMDQ.

Nevertheless, despite the circumstances, trading activity experienced an upswing as reflected in a significant 11.04% increase of dollars traded volume to $280.92 million from Monday’s recorded value of $269.88 million.

The fluctuation caused the margin between parallel market rate and NAFEM rate to reduce, going from N84.64 per dollar earlier in the week to a narrower gap of only N16.08 per dollar presently.