Business
Naira Declines to N1,600/$ in Parallel Market Amid Increased Forex Activity
The Naira weakened further in the parallel market on Tuesday, depreciating to N1,600 per dollar from N1,590 per dollar last weekend. This marks a continued downward trend for the currency in the informal market.
Conversely, the Naira showed slight improvement in the Nigerian Autonomous Foreign Exchange Market (NAFEM), where it appreciated to N1,579.22 per dollar. NAFEM, which caters to investors, exporters, and end-users, operates with exchange rates dictated by prevailing market conditions.
According to data from FMDQ, the indicative exchange rate in NAFEM dropped marginally to N1,579.22 per dollar from N1,579.89 per dollar last Friday, reflecting a modest gain of 67 kobo for the Naira.
The trading volume in NAFEM saw a significant surge, increasing by 41.4% to $162.99 million from $115.23 million over the weekend. As a result, the gap between the parallel market rate and the NAFEM rate widened, with a difference of N20.78 per dollar, compared to N10.11 per dollar last Friday.