The naira gains strength against the dollar in the parallel market. Discover the factors driving this appreciation and its economic impact.
The Naira experienced an increase in value against the US dollar on Tuesday, as observed in both the parallel market and Nigerian Autonomous Foreign Exchange Market (NAFEM).
The exchange rate in the parallel market increased from N1,555 per dollar to N1,550 per dollar on Tuesday.
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At the NAFEM, there was a 63 kobo appreciation as the Naira traded at N1,576.66 per dollar (compared to its previous rate of N1,577.29 per dollar), resulting in a strengthened currency value.
On Tuesday, the volume of dollars traded in the NAFEM window declined by 10% to $138.17 million from Monday’s figure of $153.53 million as reported by FMDQ data.
Consequently, there was an increase in the difference between the parallel market rate and NAFEM rate from N22.29 per dollar on Monday to N26.66 per dollar.
