The value of the Naira has declined further, falling to N1,635.15 per US dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM). According to data from FMDQ, this marks a slight depreciation from the previous trading day, where the exchange rate stood at N1,631.21, a drop of N3.94.
In contrast, the parallel market saw the Naira improve slightly, strengthening to N1,660 per dollar from the previous weekend’s rate of N1,665. Despite this marginal recovery in the parallel market, the gap between the official and parallel market rates has narrowed to N24.85 per dollar, compared to N33.79 per dollar recorded the previous Friday.
Another notable shift in the foreign exchange market is the significant drop in the volume of dollars traded. Turnover in the official market plunged by 47 percent, with only $126.24 million exchanged, a sharp decrease from the $238.36 million traded over the weekend.
This continued volatility in the exchange rate highlights the ongoing challenges in Nigeria’s forex market, reflecting the impact of fluctuating demand and limited dollar supply. The narrowing disparity between the official and parallel market rates could signal changes in market dynamics, but the Naira’s weakening position in NAFEM suggests persistent pressure on the currency.
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