The recent appreciation of the Naira against the US dollar, both in the parallel market and the Nigerian Autonomous Foreign Exchange Market (NAFEM), signals a significant change in the currency’s value. In the parallel market, the Naira strengthened by N10, now trading at N1,680 per dollar, compared to the previous N1,690. Similarly, in NAFEM, the Naira gained N88.35, appreciating to N1,552.92 from N1,641.27 per dollar last weekend.
While this improvement is encouraging, it’s notable that the volume of dollars traded in the official market saw a steep decline of 44%, dropping from $616.73 million last Friday to $343.71 million. The widening disparity between the rates in the parallel market and NAFEM, now at N127.08 per dollar compared to last weekend’s N48.73, is a critical point of concern. This could signal pressures in liquidity or demand differences in the official and unofficial exchange channels.
The Naira’s performance will be closely watched in the coming days to assess whether this appreciation can be sustained or if market factors will revert to previous levels.
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As of Monday, October 21, 2024, the Dollar to Naira exchange rate at the black market (also known as Aboki FX) in Lagos is: according to sources at Bureau De Change (BDC)