The Naira, yesterday fell to N1,590 per dollar in the parallel market, down from N1,580 per dollar on Monday. In the Nigerian Autonomous Foreign Exchange Market (NAFEM), the Naira also depreciated to N1,582.09 per dollar, compared to N1,570.99 per dollar the previous day.
According to data from FMDQ, the indicative exchange rate for NAFEM increased by N11.1, rising to N1,582.09 per dollar from N1,570.99 per dollar on Monday. Additionally, the volume of dollars traded in the market decreased by 18.2 percent, falling to $201.43 million from $246.44 million.
As a result, the gap between the parallel market rate and the NAFEM rate narrowed to N7.91 per dollar, down from N10.8 per dollar on Monday.
Currency trader, Isa Garba attributed the Naira’s depreciation to heightened demand and a reduced supply of dollars.
“When you see the naira closing the market at an appreciation, it means that there was increased demand and adequate supply of dollar during the period.
“Today the naira depreciated against the dollar by N10. I bought a dollar at N1580 and sold it for N1,590 as against yesterday. Today there is less supply of dollars. The dollar was traded at N1,600 per dollar this morning and closed at N1,590.
“Due to the low supply, few traders were present in the market adding to the demand and supply pressure.”
(allnews.ng)
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