Naira Strengthens to N1,350/$ in Parallel Market, Converges with Official Rate

The Nigerian naira exhibited resilience by appreciating to N1,350 per dollar in the parallel market, marking a notable improvement from last week’s rate of N1,370 per dollar. Conversely, the official Nigerian Foreign Exchange Market (NAFEM) witnessed a depreciation as the naira slipped to N925.34 per dollar, according to data from FMDQ.

The indicative exchange rate for NAFEM climbed to N925.34 per dollar, reflecting a depreciation of N22.89 compared to the rate of N902.45 per dollar recorded last weekend. This shift resulted in a reduction of the gap between the official and parallel market exchange rates, narrowing it to N397.92 per dollar, down from N467.55 per dollar the previous weekend.

Analyzing market trends, the volume of dollars traded on the NAFEM window experienced a 12 percent decrease, settling at $565.82 million last week compared to the previous week’s figure of $645.97 million. These fluctuations underscore the dynamic nature of the foreign exchange landscape, with both positive and negative movements influencing the value of the Nigerian currency.