Naira appreciates to N1,585/$ in parallel market

The Naira showed signs of recovery yesterday, appreciating to N1,585 per dollar in the parallel market, up from N1,595 the day before. This positive movement reflects growing confidence in the local currency amidst fluctuating market conditions.

In the Nigerian Autonomous Foreign Exchange Market (NAFEM), the Naira also saw a slight gain, rising to N1,586.04 per dollar. Data from FMDQ indicated an even more significant improvement, with the indicative exchange rate for NAFEM dropping to N1,564.48 per dollar from N1,586.04, marking a notable appreciation of N21.56 for the Naira.

Trading volume in the market surged by 61.5 percent, with $149.24 million exchanged, up from $92.39 million the previous day. Despite these gains, the margin between the parallel market and NAFEM rates widened to N20.52 per dollar, compared to N8.96 on Wednesday, reflecting ongoing volatility in the exchange rate landscape.

The recent appreciation offers some respite for the Naira, though the widening margin underscores the challenges in stabilizing the currency across different market segments.