Naira on Thursday appreciated in the parallel market, gaining N1,725 against the dollar and moving up from N1,730 per dollar on Wednesday.
This appreciation signals a positive shift in Nigeria’s currency performance on the unofficial market.
In the Nigerian Autonomous Foreign Exchange Market, the Naira also recorded gains, appreciating to N1,639.5 per dollar.
Data from the FMDQ, Nigeria’s leading market for debt and foreign exchange information, indicated a notable improvement, with the indicative NAFEM rate dropping to N1,639.5 per dollar from N1,681.65 the previous day.
This reflects an appreciation of N42.15 for the Naira in just 24 hours.
The dollar trading volume in NAFEM saw a boost, with a 24% increase in turnover, reaching $244.96 million compared to the $196.78 million recorded on Wednesday.
This growth in volume could suggest increased demand and liquidity in the market, potentially aiding the Naira’s appreciation.
However, this market improvement has led to a widening gap between the parallel market rate and the official NAFEM rate, expanding from N48.35 per dollar on Wednesday to N85.5 per dollar on Thursday.
The expanding margin between the two markets highlights the volatility in Nigeria’s foreign exchange environment as authorities work to balance rates and stabilize the currency.
(Punch Metro)
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