Naira Depreciates at Official Window, Gains at Parallel Market

Nigeria’s currency, the Naira, depreciated marginally against the dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM), the official market, but gained at the parallel market.

According to FDMQ data, the local currency dropped to N854. 61/$1 on Wednesday, compared to the Tuesday’s close of N844.85/$1 to a dollar at the close of trading.

Meanwhile, there is respite at the country’s parallel market as the Naira recorded a gain by strengthening marginally to N1, 228/$1 on Wednesday as against N1,238 traded the previous day.

Similarly, the Naira appreciated against the Great Britain Pounds (GBP), closing at N1,560/£ on Wednesday compared to the closing rate of N1,570 to the GBP exchanged on Tuesday.

The Governor of the Central Bank of Nigeria, Olayemi Cardoso, speaking on Wednesday last week before the National Assembly joint committee on Banking and Insurance, said the country’s exchange rate pressures are expected to reduce in 2024.

“Exchange rate pressures are also expected to reduce significantly with the smooth functioning of the foreign exchange market,” he said.

Since 14 June, when the apex bank introduced FX reforms, Naira has continued fluctuating in the forex market.

December 21, 2023