The Naira fell to N1,590 per dollar in the parallel market from N1,580 on Monday. Similarly, the Nigerian Autonomous Foreign Exchange Market, or NAFEM, saw the Naira fall to N1,582.09 per dollar yesterday.
According to FMDQ data, the indicative exchange rate for NAFEM increased to N1,582.09 per dollar from N1,570.99 per dollar on Monday, meaning that the naira depreciated by N11.1. The market’s dollar volume fell 18.2 percent to $201.43 million from $246.44 million traded on Monday.
As a result, the gap between the parallel market and the NAFEM rate fell to N7.91 per dollar from N10.8 per dollar on Monday.
Isa Garba, a currency broker, blamed the Naira’s fall to rising demand and inadequate supply of the dollar. “When the naira closes the market with an appreciation, it indicates that there was greater demand and appropriate supply of the dollar during the period. The naira dropped by N10 against the dollar today.
I bought a dollar for N1580 and sold it for N1,590 versus yesterday. There are less money available today. This morning, the dollar traded at N1,600 and finished at N1,590.
“Due to the low supply, few traders were present in the market adding to the demand and supply pressure.”
