The Naira rose to N1,730 per dollar in the parallel market Tuesday, up from N1,740 per dollar last weekend. However, the Naira fell to N1,681.42 per dollar in the Nigerian Autonomous Foreign Exchange Market, or NAFEM.
According to FMDQ data, the indicative exchange rate for NAFEM increased to N1,681.42 per dollar from N1,678.87 per dollar last Friday, meaning that the naira depreciated by N2.55.
As a result, the gap between the parallel market and NAFEM rates has reduced to N48.58 per dollar, down from N61.13 per dollar last Friday. However, analysts at Afrinvest West Africa Limited forecast a mixed performance for the foreign exchange market this week.
“The native currency had a mixed trading performance last week. This week, we expect the Naira to trade in a similar range, while recent rate cuts in big nations have bolstered the case for carry trade opportunities in Emerging Markets and Developing nations (EMDEs), particularly those with reasonably stable currency rates.”
