The Nigerian currency, the Naira, displayed fluctuations in the foreign exchange market, showcasing a blend of appreciation and depreciation against the US dollar in recent trading sessions.
In the parallel market, the Naira saw a slight appreciation to N1,545 per dollar on Friday, up from N1,550 per dollar the previous day. Conversely, in the Nigerian Autonomous Foreign Exchange Market (NAFEM), the Naira depreciated to N1,563.8 per dollar, reflecting shifts in the currency’s valuation dynamics.
According to data sourced from FMDQ, the indicative exchange rate for NAFEM climbed to N1,563.8 per dollar, marking a notable increase from N1,554.55 per dollar reported on Thursday and indicating a depreciation of N9.25 for the Naira.
During the trading session, the market witnessed an intraday high of N1,586 per dollar and an intraday low of N1,496.46 per dollar, leading to a significant spread of N89.54, highlighting the volatility in currency trading.
The volume of dollars traded on the NAFEM window experienced a decline, falling by 63.7 percent to $126.5 million compared to the previous day’s turnover of $348.82 million, reflecting fluctuations in market activity and investor sentiment.
Consequently, the gap between the exchange rates in the parallel market and NAFEM narrowed to N18.8 per dollar from N54.55 per dollar on Thursday, indicating a convergence in pricing dynamics and market conditions as the Naira’s performance against the US dollar continues to draw attention and scrutiny from market participants and analysts alike.
