The Naira has hit a new low, depreciating to N1,635.15 per dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM). According to data from FMDQ, this marks a significant drop from N1,631.21 per dollar recorded last Friday, showing a N3.94 depreciation in just a few days.
While the NAFEM rate took a hit, the Naira slightly strengthened in the parallel market, rising to N1,660 per dollar from N1,665 per dollar over the weekend. Despite this minor gain, the Naira’s performance continues to spark concerns among investors and market watchers.
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A major factor contributing to the Naira’s depreciation is the sharp decline in dollar turnover in the official market, which fell by 47% to $126.24 million from $238.36 million traded last weekend. This significant reduction in dollar supply has further tightened the market, fueling the currency’s downward spiral.
The gap between the official NAFEM rate and the parallel market rate also narrowed, dropping to N24.85 per dollar from N33.79 per dollar the previous week. This contraction reflects ongoing volatility in Nigeria’s forex market, as the nation grapples with economic challenges and inflationary pressures.
