Yesterday, the Naira rose in the parallel market to N1,485 per dollar, up from N1,490 on Monday.
However, the Naira rose to N1,473.66 per dollar on the Nigerian Autonomous Foreign Exchange Market, or NAFEM.
According to FMDQ data, the indicated exchange rate for NAFEM declined to N1,473.66 per dollar from N1,483.62 per dollar on Monday, indicating a naira appreciation of N9.96.
The dollar volume traded on the window jumped by 138.6 percent, to $385.91 million, up from $161.69 million on Monday.
As a result, the gap between parallel market and NAFEM rates grew to N11.34 per dollar from N6.38 per dollar on Monday.
Why this matters
The official exchange rate on the Nigerian Autonomous Foreign Exchange Market (NAFEM) strengthened, with the Naira gaining N9.96 against the dollar. This suggests increased confidence from foreign investors trading through official channels.
The significant rise in dollar trade on NAFEM indicates more liquidity in the official market, which can help stabilise the exchange rate.
