The Nigerian currency experienced contrasting movements yesterday, depreciating in the parallel market while appreciating in the Nigerian Autonomous Foreign Exchange Market (NAFEM).
Key Market Highlights:
- Parallel Market: Naira depreciates to N1,739/$ (from N1,735/$)
- NAFEM: Naira appreciates to N1,601.2/$ (from N1,654.09/$)
- External Reserves: Rise to $40.2 billion (up from $38.4 billion in September)
- Trading Volume: 69% increase in dollars traded in the official market ($230.99 million)
Expert Insights:
“The appreciation in NAFEM indicates a positive sentiment in the official market,” said an analyst. “However, the parallel market depreciation reflects ongoing challenges in the economy.”
Context:
- Nigeria’s foreign exchange market continues to experience volatility
- Central Bank of Nigeria’s (CBN) decision to allow market-determined exchange rate impacts Naira value
Related News:
- CBN acts to stabilize Naira
- Nigeria’s economic growth forecast revised upward
Source: Vanguard News
