WATCH THE VIDEO HERE Conversely, the Naira depreciated to ₦1,495.6 per dollar in the official market. Data released by FMDQ indicated that the indicative exchange rate for the Nigerian Foreign Exchange Market (NFEM) increased to ₦1,495.6 per dollar, up from ₦1,474.78 per dollar last weekend, reflecting a depreciation of ₦20.82 for the Naira. As a result, the gap between the parallel market rate and the NFEM rate decreased to ₦84.4 per dollar, down from ₦141.4 per dollar last weekend. This development signifies a ₦45 appreciation for the Naira in the parallel market, compared to ₦1,655 per dollar last Monday. In the official market, the Naira similarly appreciated by ₦37.9 from ₦1,533.5 last Monday. Currency traders informed journalists during the week that the weak dollar demand contributing to the Naira’s appreciation is largely due to the Chinese New Year holiday, as well as the market’s reaction to the Central Bank of Nigeria’s (CBN) recent launch of the foreign exchange code. A senior official from the Association of Bureaux De Change Operators of Nigeria (ABCON) corroborated this information to Vanguard, noting that some currency traders with substantial dollar reserves sold their holdings in anticipation of a decline in demand and exchange rates, thereby increasing market supply. Additionally, the media platform discovered an increase in dollar supply from banks. A senior bank official stated that banks are now fulfilling customer requests for Personal Travel Allowance (PTA) and Business Travel Allowance (BTA), a practice that commenced last week. In contrast, previously, most banks rarely honoured such requests.
The Nigerian currency, the Naira, experienced further appreciation in the parallel market on Monday, February 3, rising to ₦1,610 per dollar from ₦1,615 per dollar recorded last Friday, amid ongoing weak demand for the dollar.
Why The Naira Is Appreciating In Parallel Market
Dollar To Naira Today: See Latest Exchange Rate As Nigeria’s Currency Appreciates In Parallel Market
