The Naira maintained its position at ₦1,535 per dollar in the parallel market yesterday, showcasing a surprising stability amidst broader market volatility.
In contrast, the Nigerian Autonomous Foreign Exchange Market (NAFEM) witnessed a depreciation of the ₦aira, slipping to ₦1,532.58 per dollar.
According to FMDQ data, the indicative exchange rate for NAFEM rose from ₦1,523.85 per dollar on Monday, representing a ₦8.73 depreciation for the ₦aira.
Interestingly, the market experienced a significant surge in trading volume, with turnover climbing by 41 percent to $188.19 million from Monday’s $133.46 million. This uptick in trading activity highlights a heightened demand and supply dynamic within the market.
The increased activity had a notable impact on the exchange rate margin between the parallel market and NAFEM, narrowing the gap to ₦2.42 per dollar from the previous ₦11.15 per dollar on Monday.
This contraction suggests a convergence trend, reflecting changing market perceptions and strategies among traders and investors.
