The naira experienced a depreciation yesterday, falling to N1,590 per dollar in the parallel market, a decrease from the previous rate of N1,580 per dollar noted on Thursday. This decline in value reflects ongoing fluctuations in the currency market that have been observed in recent times.
In addition to the parallel market, the naira also saw a decrease in its value in the Nigerian Autonomous Foreign Exchange Market (NAFEM), where it fell to N1,617.08 per dollar. This depreciation signifies a noteworthy change from the rate of N1,570 per dollar reported on Thursday, indicating a significant drop of N47.08 for the naira against the dollar.
The FMDQ data further revealed that the indicative exchange rate for NAFEM increased to N1,617.08 per dollar, highlighting the pressures facing the naira in the current economic climate. Such fluctuations are critical to monitor as they can impact various sectors and individuals relying on foreign exchange for business and personal transactions.
Additionally, there was a noticeable decline in the volume of dollars traded within the market, which dropped by 7.6 percent, falling from $142.32 million traded on Thursday to $131.55 million yesterday. This reduction in trading volume may reflect a cautious approach by market participants amid the fluctuating exchange rates.
As a result of these changes, the margin between the parallel market exchange rate and the NAFEM rate has widened significantly, reaching N27.08 per dollar. This contrasts with a narrower margin of N10 per dollar that was recorded on Thursday. Such a widening margin may further indicate instability in the currency market, affecting the economic landscape for many involved in foreign exchange transactions.
