Parallel Market Update: Naira Weakens Against Dollar

The Naira has depreciated against the Dollar in the parallel market, reflecting ongoing currency fluctuations.

Yesterday saw the Nigerian Naira display varying levels of performance, undergoing a decline in the parallel market but exhibiting stability within the Nigerian Autonomous Foreign Exchange Market (NAFEM).

Amid economic challenges, the Naira experienced ongoing pressure resulting in a depreciation from N1,625 per dollar to N1,635 per dollar on the parallel market.

On the other hand, there was a rise in value of the Naira against the dollar in NAFEM. It ended at an amount of N1,585.77 per dollar which is quite noteworthy compared to last weekend’s recorded rate of N1,598.56 per dollar.

Read Also: Naira Depreciates by N30 Against Dollar Weekly Amid CBN Retail Dutch Auction System

A positive change in the official exchange market has resulted in an N12.79 appreciation for the Naira, indicating favorable trends.

Despite a noticeable decrease in trading volume, the indicative exchange rate for NAFEM showed improvement as per FMDQ data.

There was a decline of 58.8 percent in market turnover, where only $71.18 million changed hands, as opposed to the preceding Friday’s trading volume of $172.8 million.

The alterations have led to a wider gap between the parallel market rate and NAFEM rate. The margin has now risen to N49.23 per dollar, compared to last weekend’s figure of N26.44 per dollar, underscoring the growing discrepancy in these two exchange rates that persists till date.

The ongoing fluctuation of exchange rates remains a source of worry for both individuals and businesses. The significant gap between the parallel and official markets indicates deep-seated economic uncertainties as well as liquidity challenges in the foreign exchange market.