Significant Appreciation in Nigerian Currency
As of March 21, 2024, there has been a noticeable increase in the value of the Nigerian currency, the naira, in the foreign exchange market. According to our reliable sources, the naira’s value surged to N1,450 per dollar in the parallel market, a marked rise from its previous value of N1,580 per dollar.
Naira’s Appreciation in Foreign Exchange Market
In line with the development in the parallel market, the Nigerian Foreign Exchange Market (NAFEM) also recorded a positive shift. The naira recorded an increase in its value here as well, appreciating to N1,492.61 per dollar from its previous value of N1,560.57 per dollar on Tuesday. This indicates a substantial gain of N67.9, marking a step towards further strengthening.
The Gap between Parallel and NAFEM Rates
This positive stride in the value of naira has led to a widening gap between the rate in the parallel market and the NAFEM rate. The gap, which was previously N29.43, expanded to N42.61 per dollar. This development points not only towards the strength of the naira against the dollar but also raises questions on the disparity between these two market rates.
A Positive Phase for the Naira
- The recent rise in the naira against the dollar in both the parallel and NAFEM markets is a positive sign, indicating a possible phase of robustness for the Nigerian currency.
- However, the increasing gap between the two rates should be closely watched and managed in order to maintain a healthy financial environment.
