In recent developments, the Nigerian currency showed mixed reactions across different trading platforms. The naira rate experienced an appreciation in the parallel market, strengthening to N1,300 per dollar, a slight improvement from its previous rate of N1,305 per dollar on Wednesday. This gain, albeit marginal, paints a hopeful picture for traders and consumers alike.
Conversely, on the official front, the naira rate didn’t fare as well. Data sourced from FMDQ indicates a downturn for the currency within the Nigerian Foreign Exchange Market (NAFEM).
The naira rate depreciates with a wide margin
The naira rate depreciated significantly to N837.49 per dollar, showing a marked difference from its N801.1 per dollar position on Tuesday. This shift represents an N36.39 drop in the naira rate within the I&E window.
One silver lining amidst these fluctuating naira rate figures is the narrowing gap between the official and parallel market exchange rates. Yesterday’s records showed a gap of N462.51 per dollar, which, when compared to Wednesday’s N496.9 per dollar, indicates a positive trend.
While these figures provide a snapshot of the naira’s current standing, they underscore the ongoing complexities within Nigeria’s foreign exchange market. As economic stakeholders monitor the situation, the naira rate remains a focal point for the nation’s financial future.
What to note
The naira experienced a significant decline on Tuesday, dropping to a record low of N1,310 per dollar in the parallel (black) market. This comes after a previous closing at N1,235 per dollar on Monday. Additionally, the currency weakened by 6.86% at the Nigerian Autonomous Foreign Exchange Market (NAFEM) where it traded at N847.77 per dollar, showing further depreciation from its earlier positions.
Finance Minister Wale Edun mentioned an expected $10 billion foreign currency inflow in the coming weeks which could alleviate the dollar scarcity. Despite this, Nigeria’s foreign reserves have shown a slight increase. Analysts anticipate stabilization of the naira rate if the projected inflows materialize.
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