The Nigerian Naira experienced a mixed performance against the US Dollar on Monday, with varying results across different exchange markets. In the parallel market, the Naira depreciated, trading at N1,635 per dollar, down from N1,625 per dollar reported last weekend. This represents a decline of N10 per dollar.
Conversely, the Naira saw an appreciation in the Nigerian Autonomous Foreign Exchange Market (NAFEM). According to recent data from the FMDQ, the indicative exchange rate for NAFEM improved to N1,585.77 per dollar, a rise from N1,598.56 per dollar last weekend. This translates to a N12.79 appreciation in the Naira’s value against the Dollar.
The volume of dollars traded in NAFEM also saw a significant reduction, with turnover dropping by 58.8% to $71.18 million from $172.8 million recorded the previous Friday. This decline in trading volume reflects a lower market activity during the period.
As a result of these fluctuations, the gap between the parallel market rate and the NAFEM rate has widened considerably. The margin now stands at N49.23 per dollar, an increase from the N26.44 per dollar observed last weekend.
The ongoing variability in the Naira’s performance highlights the challenges facing Nigeria’s foreign exchange market and underscores the impact of market dynamics on currency valuation.
