On Friday, the Naira showed signs of recovery as it appreciated to N1,585 per dollar in the parallel market, up from a previous rate of N1,590 per dollar recorded on Thursday. This slight but notable increase reflects ongoing fluctuations in the foreign exchange landscape.
In a related development, the Naira also experienced an upward trend in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on the same day, appreciating to N1,574.2 per dollar. This is a significant improvement compared to the prior day’s exchange rate, which stood at N1,593.62 per dollar on Thursday, indicating a noteworthy appreciation of N19.42 for the Naira against the dollar.
The data sourced from the Financial Market Dealers Quote (FMDQ) revealed this shift, showcasing the dynamics of the naira’s performance in these markets. Additionally, the trading volume of dollars in the market saw a substantial increase, surging by 127.5 percent to reach a total of $323.11 million. This figure marks a significant rise from the $141.99 million that was traded just the day before, demonstrating a heightened activity level among traders.
As a result of these changes, the gap between the exchange rates in the parallel market and the NAFEM rate has widened considerably. It shifted to N10.8 per dollar, a notable increase from N3.52 per dollar that was recorded on Thursday. This growing difference highlights the varying conditions present in the different markets available for currency exchange in Nigeria.
