The Nigerian Naira strengthened to N1,695 per dollar in the parallel market on Wednesday, a gain from N1,725 per dollar on Tuesday, indicating a positive movement in the currency’s value, SAVANNAH NEWSNOW REPORTS.
Meanwhile, the Naira maintained stability at N1,672.69 per dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM), according to FMDQ data.
Since the commencement of live foreign exchange trading on the Bloomberg BMatch System, the Naira has shown stability, with a slight increase in the volume of dollars traded.
On Wednesday, the trading volume rose by 4.4% to $216.99 million, up from $207.86 million on Tuesday. The gap between the parallel market rate and the NAFEM rate narrowed, decreasing from N52.31 per dollar on Tuesday to N22.31 per dollar on Wednesday.
Black market traders attribute the Naira’s appreciation to reduced demand pressures, as importers have already made significant purchases in anticipation of potential shifts in exchange rates for the upcoming year.
Experts predict that the demand for dollars may remain subdued due to the approaching festive season, contributing to the Naira’s relative stability. If this trend continues, some analysts forecast that the Naira could end the year within a slightly stronger range of N1,650 to N1,700 per dollar.
