On Tuesday, the Naira depreciated in the parallel market, falling to N1,600 per dollar from N1,590 per dollar recorded over the weekend.
In contrast, the naira appreciated in the Nigerian Autonomous Foreign Exchange Market (NAFEM), where it strengthened to N1,579.22 per dollar. NAFEM is a trading platform for investors, exporters, and end-users, where forex transactions are conducted at rates determined by prevailing market conditions.
According to data from FMDQ, the indicative exchange rate for NAFEM improved slightly, gaining 67 kobo from Friday’s rate of N1,579.89 per dollar. The volume of dollars traded in NAFEM also saw a significant increase, surging by 41.4% to $162.99 million, up from $115.23 million last weekend.
As a result of these shifts, the gap between the parallel market rate and the NAFEM rate widened to N20.78 per dollar, compared to a margin of N10.11 per dollar last Friday.
