In the latest developments within Nigeria's foreign exchange markets, the Naira experienced fluctuations against the dollar. Yesterday, the Naira appreciated in the parallel market, rising to N1,510 per dollar from the previous rate of N1,515 per dollar last Friday. Despite this appreciation in the parallel market, the Naira showed depreciation in the Nigerian Autonomous Foreign Exchange Market (NAFEM), with the exchange rate falling to N1,508.99 per dollar compared to N1,505.3 per dollar last weekend. This indicates a N3.69 depreciation for the Naira in the NAFEM.
According to data from FMDQ, the volume of dollars traded in the NAFEM market experienced a significant decline. The market saw a 34.9 percent drop in traded dollars, decreasing to $122.31 million from the $187.82 million traded last Friday. This reduction in trading volume reflects changing dynamics within the market, possibly influenced by supply and demand factors.
As a result of these changes, the margin between the parallel market rate and the NAFEM rate has narrowed significantly. The difference between the two rates decreased to N1.01 per dollar, down from N9.7 per dollar last weekend. This narrowing gap suggests a closer alignment between the two market rates, which could have implications for future trading and economic strategies.