The Nigerian Naira appreciated to N1,695 per dollar in the parallel market on Wednesday, up from N1,725 per dollar on Tuesday, showing a positive shift in the currency’s value.
However, the Naira remained stable at N1,672.69 per dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM), as confirmed by FMDQ data.
Since the start of live foreign exchange trading on the Bloomberg BMatch System earlier this week, the Naira has exhibited stability, with a slight increase in the volume of dollars traded. On Wednesday, the trading volume grew by 4.4% to $216.99 million, compared to $207.86 million on Tuesday.
The gap between the parallel market rate and the NAFEM rate has narrowed, dropping from N52.31 per dollar on Tuesday to N22.31 per dollar on Wednesday.
According to black market traders, the Naira’s appreciation is primarily driven by reduced demand pressures, as importers have already made significant purchases in anticipation of potential shifts in exchange rates for the upcoming year.
With the festive season approaching, experts suggest that the demand for dollars may continue to be subdued, contributing to the Naira’s relative stability. If this trend continues, some analysts predict that the Naira could end the year within this new, slightly stronger range of N1,650 to N1,700 per dollar.