In a mixed performance, the Nigerian Naira showcased resilience in the parallel market while facing challenges in the official market.
The Naira appreciated to N1,245 per dollar in the parallel market, marking a slight increase from N1,250 per dollar observed on Thursday.
Similarly, positive movements were witnessed in the Nigerian Foreign Exchange Market (NAFEM), where the Naira strengthened to N1,251.05 per dollar.
Data from FMDQ indicated a decline in the indicative exchange rate for NAFEM, which fell to N1,251.05 per dollar from N1,255.07 per dollar on the previous day, signaling a commendable N4.02 appreciation for the Naira.
READ ALSO: Naira Appreciates to N1,350/$ in Parallel Market
However, despite these positive developments, fluctuations persisted throughout the trading day, with the market recording an intraday high of N1,281 per dollar and an intraday low of N1,220 per dollar, resulting in a margin of N61.
Meanwhile, the volume of dollars traded in the market surged by 78.6 percent to $248.27 million, compared to $138.99 million traded on Thursday.
Despite the Naira’s gains in the parallel market, the margin between the parallel market and NAFEM rates widened to N6.05 per dollar from N5.07 per dollar on Thursday, highlighting the divergence in rates between the two markets.
READ ALSO: Naira Appreciates Against Dollar, Closes at 1,382/$
The contrasting performance of the Naira underscores the complex dynamics at play in Nigeria’s foreign exchange landscape, with various factors influencing exchange rate movements.