Nigeria’s official currency, the Naira, experienced a slight depreciation against the US dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM), while simultaneously strengthening at the parallel market.
According to data from the Financial Markets Dealers’ Quotations (FDMQ), on Wednesday, the local currency declined to N854.61/$1, in contrast to the previous day’s closing rate of N844.85/$1.
Conversely, at the parallel market, there was a positive development as the Naira gained ground, strengthening marginally to N1,228/$1 on Wednesday, marking an improvement from the N1,238/$1 traded the day before.
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The Naira also exhibited strength against the Great Britain Pounds (GBP), closing at N1,560/£ on Wednesday, compared to the previous day’s closing rate of N1,570/£.
Governor Olayemi Cardoso of the Central Bank of Nigeria addressed the National Assembly joint committee on Banking and Insurance last week, expressing optimism about a reduction in exchange rate pressures by 2024. He stated, “Exchange rate pressures are also expected to reduce significantly with the smooth functioning of the foreign exchange market.”
Since the introduction of foreign exchange reforms by the apex bank on June 14, the Naira has been subject to fluctuations in the forex market.