The Nigerian currency, Naira, has recorded a significant depreciation in value, reaching N1,755 per dollar in the parallel market but appreciated to N1,659.44 per dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM).
According to data from FMDQ, the indicative exchange rate for NAFEM rose to N1,659.44 per dollar from N1,675.62 per dollar on Monday, indicating N16.18 appreciation for the Naira.
However, the Naira depreciated to N1,755 per dollar in the parallel market from N1,770 per dollar on Monday.
The volume of dollars traded (turnover) increased by 219.5 percent to $425.98 million from $108.79 million traded on Monday.
Consequently, the margin between the parallel market and NAFEM rate narrowed to N95.56 per dollar from N117.38 per dollar on Monday.
The appreciation of the Naira is a welcome development, especially for importers and individuals who rely on foreign exchange for their businesses and personal needs.
However, it remains to be seen whether this appreciation will be sustained, given the various economic challenges facing the country.
The Central Bank of Nigeria (CBN) has been working to stabilize the exchange rate and ensure that the Naira remains competitive.
The CBN has also been implementing various policies to boost economic growth, reduce inflation, and increase foreign exchange earnings.
As the economy continues to evolve, it is essential to monitor the exchange rate and other economic indicators to ensure that the country is on the path to sustainable growth and development.
Source: Vanguard
