Naira Plunges to Record Low in Currency Slum, Gains in NAFEM

The Naira yesterday crashed to a record low of N1,600 per dollar in the parallel market, a significant depreciation from N1,590 per dollar last weekend.

However, in a contrasting move, the Naira appreciated to N1,579.22 per dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM), indicating a 67 kobo gain.

According to data from FMDQ, the indicative exchange rate for NAFEM fell to N1,579.22 per dollar from N1,579.89 per dollar last week Friday.

The volume of dollars traded in the market surged by 41.4% to $162.99 million from $115.23 million traded last weekend.

However, the widening gap between the parallel market and NAFEM rate raised concerns, with the margin increasing to N20.78 per dollar from N10.11 per dollar last week Friday.

“As the Naira continues to fluctuate, it’s essential to monitor the market trends and adjust our strategies accordingly,” said a financial analyst.

“The widening gap between the parallel market and NAFEM rate may indicate a potential shift in investor sentiment.”