Naira increases to N1,695/$ in parallel market

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The Naira yesterday strengthened to N1,695 per dollar in the parallel market, up from N1,725 per dollar on Tuesday.

Meanwhile, the Naira remained stable at N1,672.69 per dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM). Data from FMDQ indicated that the indicative exchange rate for the Naira has remained steady since Monday, following the start of live foreign exchange trading on the Bloomberg BMatch System.

The volume of dollars traded (turnover) increased by 4.4 percent, rising to $216.99 million from $207.86 million on Tuesday.

As a result, the gap between the parallel market and NAFEM rate narrowed to N22.31 per dollar, down from N52.31 per dollar on Tuesday. Mr. Sanni Daudu, a black market trader, attributed the ongoing appreciation of the Naira to reduced demand pressure. With the festive season approaching, demand for the dollar has eased.

Many importers have already made their purchases, uncertain about what the foreign exchange rate will be next year.

This is a positive development for now, as the exchange rate today remained below N1,700 and above N1,650. I expect the Naira to maintain this trend of appreciation, based on demand and supply, and close the year on a positive note.