Parallel Market Turmoil as Naira Slides to N1,230/$ – Widening Gap with Official Rates

The Nigerian naira experienced a decline in the parallel market, falling to N1,230 per dollar from N1,225 recorded the previous Friday. Conversely, the official Nigerian Foreign Exchange Market (NAFEM) witnessed an appreciation, with the naira strengthening to N872.59 per dollar.

According to data from FMDQ, the indicative exchange rate for NAFEM displayed a notable improvement, decreasing to N872.59 per dollar from the previous N885.88 per dollar over the weekend. This marks a commendable N13.29 appreciation for the national currency.

The growing disparity between the official and parallel market exchange rates is evident, widening to N357.41 per dollar, compared to the N339.12 per dollar reported the previous Friday.

Furthermore, the volume of dollars traded on the NAFEM window surged by 39 percent, reaching $127.93 million, a significant increase from the $92.16 million traded the previous weekend. These fluctuations in the foreign exchange market continue to shape the economic landscape, drawing attention to the challenges and dynamics influencing the naira’s performance.