The Nigerian Naira experienced significant depreciation on Tuesday, falling to N1,656.49 per dollar in the Nigerian Autonomous Foreign Exchange Market.
This marks a sharp decline compared to last week Friday’s rate of N1,546.51 per dollar, amounting to a depreciation of N109.98.
According to data from FMDQ, despite this downturn, the Naira showed some recovery as it appreciated to N1,640 per dollar from N1,660 per dollar over the weekend.
As a result of these fluctuations, the gap between the parallel market and NAFEM rates narrowed considerably, reducing to N16.49 per dollar compared to the wider margin of N113.59 per dollar recorded last week Friday.
These movements highlight the volatile nature of Nigeria’s foreign exchange market, where the Naira continues to face pressure amidst economic challenges and shifting market dynamics.
The decline in value on NAFEM points to growing concerns over liquidity and currency stability.
Market analysts suggest that the government’s policies and the performance of the oil sector, Nigeria’s largest foreign exchange earner, are key factors influencing the Naira’s performance in the coming weeks.
