The Naira experienced further depreciation yesterday, with its value dropping to ₦1,610 per dollar in the parallel market, compared to ₦1,600 per dollar at the close of last week. This decline reflects ongoing pressure on the Nigerian currency amidst economic challenges.
In the Nigerian Autonomous Foreign Exchange Market (NAFEM), the Naira also weakened, with the exchange rate rising to ₦1,596.6 per dollar from ₦1,570.14 per dollar last Friday, indicating a ₦26.46 depreciation.
The turnover in NAFEM, or the volume of dollars traded, also saw a significant decline, dropping by 17.3% to $102.93 million from $120.81 million traded last weekend. This reduction in dollar liquidity likely contributed to the currency’s depreciation.
As a result, the margin between the parallel market rate and the NAFEM rate has narrowed to ₦13.4 per dollar from ₦29.86 per dollar last weekend, signaling a convergence between the two markets, though both are showing signs of stress
