The Nigerian Naira experienced mixed fortunes yesterday, appreciating in the parallel market while depreciating in the Nigerian Autonomous Foreign Exchange Market (NAFEM).
Key Highlights:
- Parallel Market: Naira appreciates to N1,735 per dollar from N1,740 last weekend.
- NAFEM: Naira depreciates to N1,690.37 per dollar from N1,652.25 last week Friday.
- Volume of Dollars Traded: Declined by 41.6% to $173.14 million from $296.63 million last weekend.
- Margin Between Parallel Market and NAFEM Rate: Narrowed to N44.63 per dollar from N87.75 per dollar last week Friday.
The appreciation in the parallel market is a positive development, but the depreciation in NAFEM highlights the ongoing challenges in Nigeria’s foreign exchange market.
Possible Implications:
- Increased Confidence: Appreciation in the parallel market may boost confidence in the Naira.
- Forex Scarcity: Depreciation in NAFEM may worsen forex scarcity.
- Economic Impact: Mixed exchange rates may affect businesses, imports, and exports.
Source: Vanguard
