According to report, The Naira experienced a notable depreciation in the parallel market, where its exchange rate against the US dollar reached N1,405 compared to N1,305 per dollar recorded just a day earlier. This decline underscores the ongoing volatility and fluctuation in Nigeria’s foreign exchange landscape, impacting currency markets and economic conditions.
Similarly, within the Nigerian Foreign Exchange Market (NAFEM), the Naira witnessed a decline, settling at N1,309.88 per dollar based on data from FMDQ. This rate represents an increase from the previous day’s rate of N1,308.52 per dollar, indicating a depreciation of N1.36 for the Naira against the US dollar. Such shifts in the official exchange rate highlight the challenges of maintaining currency stability amidst external economic pressures.
The widening disparity between the parallel market and NAFEM rates is also significant, with the margin expanding to N95.12 per dollar compared to N45.15 per dollar the day before. This widening gap underscores the divergence in exchange rate dynamics between formal and informal currency markets. It reflects broader concerns about currency liquidity, market confidence, and the effectiveness of monetary policies in managing exchange rate stability.
