Naira Appreciates in Both Parallel Market and NAFEM

The Naira showed signs of recovery in the parallel market, appreciating to N1,485 per dollar from N1,490 per dollar recorded on Monday. Similarly, in the Nigerian Autonomous Foreign Exchange Market (NAFEM), the Naira appreciated to N1,473.66 per dollar from N1,483.62 per dollar.

Key Points:

  1. Parallel Market Movement:
    • The Naira appreciated by N5, moving from N1,490 per dollar to N1,485 per dollar.
  2. NAFEM Appreciation:
    • Data from FMDQ indicated that the indicative exchange rate for NAFEM improved, falling to N1,473.66 per dollar from N1,483.62 per dollar. This reflects a N9.96 appreciation.
  3. Trading Volume Surge:
    • The volume of dollars traded in NAFEM increased significantly by 138.6%, reaching $385.91 million from the previous $161.69 million.
  4. Widening Exchange Rate Margin:
    • The margin between the parallel market and NAFEM rates widened to N11.34 per dollar from N6.38 per dollar on Monday. This indicates a broader gap between the official and parallel market rates.


The appreciation of the Naira in both markets suggests a positive response to increased dollar liquidity and possibly other market interventions. The significant increase in trading volume in NAFEM might be a key factor contributing to the Naira’s strengthening. However, the widening margin between the parallel and official rates indicates ongoing discrepancies in the market that need to be addressed to ensure stability and reduce speculative pressures.

Expert Insight at Vanguard Economic Discourse:

In discussions at the Vanguard Economic Discourse, experts emphasized the importance of policies aimed at increasing foreign exchange earnings and stabilizing the Naira. Key suggestions included diversifying export revenues, improving the investment climate to attract foreign direct investment, and enhancing the efficiency of the foreign exchange market.

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