The Naira experienced a significant drop in value yesterday, falling to N1,570 per dollar in the parallel market from N1,550 per dollar on Tuesday.
Decline in Nigerian Autonomous Foreign Exchange Market
In the Nigerian Autonomous Foreign Exchange Market (NAFEM), the Naira also depreciated, reaching N1,581.65 per dollar. According to data from FMDQ, the indicative exchange rate for NAFEM increased from N1,576.66 per dollar on Tuesday, marking a N4.99 depreciation for the Naira. Additionally, the volume of dollars traded in this market saw a decline of 21.7%, dropping to $108.16 million from $138.17 million the previous day.
Narrowing Margin Between Markets
As a result of these fluctuations, the margin between the parallel market rate and the NAFEM rate narrowed significantly. The gap decreased to N11.65 per dollar from the previous N26.66 per dollar observed on Tuesday.
These changes reflect ongoing challenges in the foreign exchange market, highlighting the volatility and pressures on the Naira.
