Home ยป Nigerian Naira Posts Substantial Gain, Soars to N874.79 per Dollar in Forex Markets

Nigerian Naira Posts Substantial Gain, Soars to N874.79 per Dollar in Forex Markets

by ONUAH YVONNE

The Nigerian naira has recorded a significant surge in the Nigerian Foreign Exchange Market (NAFEM), appreciating to N874.79 per dollar. This marks a remarkable 19 percent increase from its previous rate of N1,082.32 per dollar recorded on Wednesday.

Data from the Financial Markets Dealers Quotations (FMDQ) reveals that the indicative exchange rate for NAFEM experienced an appreciation of N207.53, signifying a substantial uplift for the naira. The day’s trading witnessed an intraday high of N1,264.96 per dollar and a low of N475 per dollar, resulting in a considerable margin of N789.96 per dollar.

The volume of dollars traded in the NAFEM was substantial, reaching a notable figure of $110.41 million.

A parallel upward trend was observed in the parallel market, where the naira appreciated to N1,240 per dollar from N1,250 per dollar on the preceding day. However, this improvement has led to a widening gap between the official NAFEM rate and the parallel market rate. The difference now stands at N365.21 per dollar, in contrast to the N167.68 per dollar difference recorded the previous day.

These recent movements in exchange rates underscore the dynamic nature of Nigeria’s foreign exchange market, with significant implications for the country’s economic landscape.

The performance of the naira in both NAFEM and the parallel market serves as a crucial indicator of the nation’s economic health, capturing the attention of businesses, investors, and policymakers alike. The evolving currency dynamics hold substantial implications for Nigeria’s economic trajectory, influencing various sectors and stakeholders.

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