Naira Slumps Against Dollar At Parallel Market- [See New Exchange Rate]

Yesterday, the Nigerian currency, the Naira, experienced a decline in value, reaching N1,250 per dollar in the parallel market, compared to N1,140 per dollar on Thursday.

Similarly, in the Nigerian Foreign Exchange Market (NAFEM), the Naira depreciated to N1,234.49 per dollar. According to data from FMDQ, the indicative exchange rate for NAFEM increased to N1,234.49 per dollar from N1,169.99 per dollar last week Friday, resulting in a depreciation of N64.5 for the Naira.

As a result, the margin between the parallel market and NAFEM rates narrowed to N15.51 per dollar from N29.99 per dollar last weekend.

It is worth noting that the Nigerian Naira has been on a rollercoaster ride against the US Dollar in recent times.

After a significant depreciation in 2023, reaching record lows, the Naira has shown signs of recovery in 2024. This uptick can be attributed to several factors, including rising global oil prices that boost Nigeria’s export earnings, interventions by the Central Bank of Nigeria to curb currency speculation, and a surge in diaspora remittances.

However, despite this positive trend, there is still caution among experts. High inflation rates continue to erode purchasing power, and the underlying structural issues in the Nigerian economy need to be addressed for a sustained recovery of the Naira.

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