Naira records mixed performance as forex market volatility persists
The Nigerian naira experienced a mixed performance on Friday, appreciating slightly on the Nigerian Autonomous Foreign Exchange (NAFEX) but depreciating on the parallel market.
In a surprise move, the naira gained N45.98 on NAFEX, closing at N1,593.32 to a dollar, up from N1,639 to a dollar the previous day.
This development was accompanied by a significant increase in daily transaction volumes, with the daily turnover rising 31.96% to reach $245.17 million.
However, the naira’s gain on NAFEX was offset by a depreciation on the parallel market, where it lost N13 to close at N1,673/$1, compared to N1,660/$1 on Thursday.
The naira’s volatility is attributed to the ongoing liquidity shortfall, which has plagued the currency since the removal of foreign exchange controls last year.
Despite efforts by the central bank to stabilize the naira, including aggressive interest rate hikes, the currency has lost around 70% of its value against the US dollar.
As the forex market continues to experience fluctuations, stakeholders remain cautious, awaiting further developments that could impact the naira’s stability.
