Yesterday, the Naira strengthened in the parallel market, appreciating to N1,695 per dollar from N1,725 per dollar on Tuesday.
However, the Naira ramained stable at N1,672.69 per dollar in the Nigerian Autonomous Foreign Exchange Market, NAFEM. Data from FMDQ showed that the indicative exchange rate for the naira has maintained stability since Monday following the commencement of live foreign exchange trade on Bloomberg BMatch System.
The volume of dollars traded (turnover) grew by 4.4 percent to $216.99 million from $207.86 million traded on Tuesday.
Consequently, the margin between the parallel market and NAFEM rate narrowed to N22.31 per dollar from N52.31 per dollar on Tuesday. Mr. Sanni Daudu, a black market trader said the continuous appreciation of the naira was due to reduced demand pressure. The pressure of demand for the dollar has suppressed as the festive season is approaching.
Most importers have made purchases as they don’t know what the outcome of the foreign exchange rate will be next year.
This is a good omen for now as the exchange rate for today was below N1,700 and above N1,650. I see the naira closing the year at an appreciation level of this trend in demand and supply.
