The Naira experienced a notable appreciation against the US Dollar in the parallel market as well as the Nigerian Autonomous Foreign Exchange Market (NAFEM), according to the latest financial reports.
On Tuesday, the Naira strengthened to ₦1,470 per dollar, up from Monday’s rate of ₦1,475 per dollar in the parallel market.
The appreciation continued in NAFEM, where the Naira climbed to ₦1,465.68 per dollar from ₦1,468.99 per dollar on Monday, reflecting a significant improvement of ₦3.31.
Data sourced from FMDQ revealed that the difference between the rates in the parallel market and NAFEM has reduced to ₦4.32 per dollar, down from ₦6.01 per dollar at the start of the week.
Financial analysts attribute this positive movement to several macroeconomic factors and increased foreign exchange interventions by the Central Bank of Nigeria. The convergence of these rates is seen as a positive sign and is expected to boost investor confidence in the stability of the Naira.
The Central Bank has been actively involved in managing the exchange rate through policies aimed at stabilizing the currency and reducing the volatility in the foreign exchange market.
