The Naira showed a notable improvement in the parallel market on Thursday, appreciating to N1,725 per dollar from the previous day’s rate of N1,730.
This gain marks a positive shift for the Nigerian currency in the unofficial trading sector.
In the Nigerian Autonomous Foreign Exchange Market (NAFEM), the Naira also saw an upward trend, strengthening to N1,639.5 per dollar.
Data from FMDQ, the country’s leading platform for debt and foreign exchange information, revealed a significant appreciation, with the indicative NAFEM rate dropping from N1,681.65 per dollar on Wednesday to N1,639.5 on Thursday.
This represents a N42.15 gain for the Naira within just one day.
The volume of dollar transactions in NAFEM increased as well, with turnover rising by 24% to $244.96 million, compared to $196.78 million recorded the day before.
This boost in trading activity may indicate higher demand and improved liquidity, contributing to the Naira’s appreciation.
Despite these gains, the gap between the parallel market rate and the official NAFEM rate has widened.
The difference expanded from N48.35 per dollar on Wednesday to N85.5 per dollar on Thursday, underscoring the ongoing volatility in Nigeria’s foreign exchange market.
The growing disparity between the two exchange rates highlights the challenges facing Nigeria’s currency market as authorities continue efforts to stabilize the Naira and bring the rates closer together.
