The Nigerian currency, Naira, experienced a mixed performance yesterday, appreciating in the parallel market while depreciating in the Nigerian Autonomous Foreign Exchange Market (NAFEM).
In the parallel market, the Naira strengthened to N1,375 per dollar, a significant improvement from its value of N1,500 per dollar on Tuesday. This development indicates a positive trend in the unofficial market.
However, in NAFEM, the Naira depreciated to N1,339.33 per dollar, a decline from its previous rate of N1,173.88 per dollar on Tuesday. This represents a depreciation of N155.77 for the Naira.
Data from FMDQ, the platform that tracks foreign exchange rates, showed that the indicative exchange rate for NAFEM rose to N1,329.65 per dollar, indicating a significant depreciation of the Naira.
As a result of these changes, the margin between the parallel market and NAFEM rates narrowed to N45.35 per dollar from N326.12 per dollar on Tuesday. This narrowing of the margin suggests that the Naira's performance in the parallel market is becoming more aligned with its performance in NAFEM.
