Naira Depreciates Further Against Dollar in Parallel and Official Markets

The Naira’s value against the US Dollar has continued to decline, reaching N1,140 per dollar in the parallel market and N1,169.99 per dollar in the Nigerian Foreign Exchange Market (NAFEM). This represents a significant depreciation from the previous day’s rates.

In the parallel market, the Naira depreciated from N1,060 per dollar on Thursday to N1,140 per dollar, indicating a substantial decrease in value. Similarly, in the NAFEM, the indicative exchange rate rose to N1,169.99 per dollar from N1,154.98 per dollar on the previous day, marking a depreciation of N15.01 for the Naira.

Data from FMDQ revealed that the NAFEM experienced fluctuations throughout the trading session, with an intraday high of N1,236 per dollar and an intraday low of N1,021 per dollar, resulting in a significant margin of N215.

Despite the fluctuations, the volume of dollars traded on the NAFEM window declined by 53.2 percent to $86.86 million from $185.62 million on the previous trading day.

As a result of these developments, the margin between the parallel market and NAFEM rates narrowed to N29.99 per dollar from N94.08 per dollar on the previous day, reflecting the increased pressure on the Naira in both markets.