Naira appreciates to N1,695/$ in parallel market

The volume of dollars traded (turnover) increased by 4.4%, rising to $216.99 million from $207.86 million on Tuesday.

Yesterday, the Naira strengthened in the parallel market, appreciating to N1,695 per dollar, up from N1,725 per dollar on Tuesday.

However, the Naira remained stable at N1,672.69 per dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX). Data from FMDQ indicated that the indicative exchange rate for the Naira has remained stable since Monday, following the launch of live foreign exchange trading on the Bloomberg BMatch System.

As a result, the gap between the parallel market rate and the NAFEX rate narrowed to N22.31 per dollar, down from N52.31 per dollar on Tuesday.

Mr. Sanni Daudu, a black market trader, attributed the continuous appreciation of the Naira to reduced demand pressure. With the festive season approaching, demand for dollars has eased, as many importers have already made their purchases in anticipation of next year’s foreign exchange rate fluctuations.

“This is a positive sign for now, as the exchange rate today is below N1,700 and above N1,650. I expect the Naira to close the year on a positive note, with continued stability in supply and demand,” he said.