Naira stable at N1,600/$ in parallel market

The naira held steady on Thursday, stabilizing at N1,600 per dollar in the parallel market, signaling a brief pause in its recent volatility. However, in the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira saw a notable appreciation, strengthening to N1,570.14 per dollar.

FMDQ data revealed that the NAFEM indicative exchange rate dropped from N1,586.11 per dollar to N1,570.14 per dollar, resulting in a N15.97 gain for the naira. Despite this positive shift, the volume of dollars traded in NAFEM experienced a minor decline, decreasing by 0.5% to $120.81 million.

The difference between the parallel market and NAFEM rates expanded as a result of these movements, with the margin widening to N29.86 per dollar, up from N13.89 per dollar on the previous day. This highlights the continued fluctuations within Nigeria’s foreign exchange markets.

These developments underscore the dynamic nature of the naira’s performance across different market segments, reflecting ongoing pressures and responses within the foreign exchange ecosystem.