Yesterday, the Naira depreciated to ₦1,590 per dollar in the parallel market, down from ₦1,580 per dollar on Monday.
In the Nigerian Autonomous Foreign Exchange Market (NAFEM), the Naira also fell to ₦1,582.09 per dollar, compared to ₦1,570.99 per dollar the previous day.
Data from FMDQ revealed that the indicative exchange rate for NAFEM increased to ₦1,582.09 per dollar, reflecting an ₦11.10 depreciation.
Additionally, the volume of dollars traded in the market dropped by 18.2%, falling to $201.43 million from $246.44 million on Monday.
As a result, the gap between the parallel market rate and the NAFEM rate narrowed to ₦7.91 per dollar, down from ₦10.80 per dollar on Monday.
Read Also: BREAKING: Fresh Twist As Dangote Refinery Reacts To Reports Of Fixing N600 Per Liter As Petrol Price
Currency trader Isa Garba attributed the Naira’s depreciation to heightened demand and insufficient supply of the dollar.
“When you see the naira closing the market at an appreciation, it means that there was increased demand and adequate supply of dollar during the period.
Today the naira depreciated against the dollar by N10. I bought a dollar at N1580 and sold it for N1,590 as against yesterday. Today there is less supply of dollars. The dollar was traded at N1,600 per dollar this morning and closed at N1,590.
“Due to the low supply, few traders were present in the market adding to the demand and supply pressure.”
