The Naira experienced a notable appreciation against the US dollar yesterday, both in the parallel market and the Nigerian Autonomous Foreign Exchange Market (NAFEM).
In the parallel market, the Naira strengthened to N1,755 per dollar, improving from N1,770 per dollar recorded on Monday.
Similarly, in NAFEM, the currency appreciated to N1,659.44 per dollar, up from N1,675.62 per dollar on Monday. This represents a gain of N16.18 for the Naira.
According to data from FMDQ, trading activity in the NAFEM surged, with the turnover jumping by 219.5% to $425.98 million, compared to $108.79 million traded on Monday.
As a result, the margin between the parallel market rate and the NAFEM rate narrowed significantly to N95.56 per dollar, from Monday’s N117.38 per dollar.
The improved performance of the Naira comes amidst efforts to stabilize the currency and enhance dollar liquidity in the markets.