April 18, 2024

Naira Falls to N1,405 in Parallel Market Amid Exchange Rate Challenges

 

 

By: Emmanuel Ibitoye

 

In recent developments, the Nigerian naira witnessed a depreciation, reaching N1,405 per dollar in the parallel market, compared to N1,375 per dollar the previous day. Simultaneously, in the Nigerian Foreign Exchange Market (NAFEM), the naira experienced a decline, with the indicative exchange rate rising to N900.96 per dollar from N882.24 per dollar on the previous day, marking a depreciation of N18.76 for the national currency.

 

Data sourced from the Financial Markets Dealers Quotations (FMDQ) revealed the widening gap between the official and parallel market exchange rates. The current gap expanded to N504.04 per dollar, compared to N492.76 per dollar reported on the previous day.

 

These fluctuations in the exchange rates highlight the challenges facing the Nigerian currency in both official and parallel markets, contributing to concerns about economic stability. The widening gap between the two markets emphasizes the complexity of managing currency valuation in the country.

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