Home Market Naira Appreciates at Parallel Market on Better Inflow of Forex

Naira Appreciates at Parallel Market on Better Inflow of Forex

by Harry Choms

On Tuesday, the Naira strengthened against the US dollar in the parallel market segment of the foreign exchange (forex) market.

In the black market yesterday, the Nigerian currency was exchanged for its American counterpart at N741/$1, down from N743/$1 the previous session.

This meant that the local currency gained N2 or 0.27 percent against the US dollar during the trading day, a public holiday.

The federal government has declared December 26 and 27, 2022, as public holidays to commemorate Christmas and Boxing Day.

Because of the moderation in FX demand, the Nigerian Naira performed better than its US counterpart on the free market on Tuesday, according to Entrepreneurng.

During the holidays, the market saw an inflow of forex as Nigerians received funds from outside the country to celebrate Christmas. Nigerians abroad who returned home for the festive period always exchanged their hard currencies for Naira.

However, this is expected to gradually dry up in the first week of next month as users prepare to request FX for school fees, BTA/PTA, and other purposes, including the prosecution of politicians in the 2023 general elections.

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