As of Sunday, October 27, the Nigerian Naira is trading at N1,740 to $1 in the parallel market, reflecting ongoing volatility in the currency's value.
In a slight positive shift, the Naira showed minor appreciation in the Nigerian Autonomous Foreign Exchange Market (NAFEM), where dealers speculate that the Central Bank of Nigeria (CBN) may intervene soon to stabilize the exchange rate. Recent data from the FMDQ indicated that the indicative exchange rate for NAFEM fell to N1,600 per dollar, down from N1,601.2 on Thursday, marking a N1.2 appreciation for the Naira.
However, if the current trend of depreciation continues, experts warn that the local currency could erase the gains it made earlier this year. In March, the Naira had significantly appreciated from an all-time high of N1,820/$1 in February 2024, dropping to N1,310/$1 and further down to N1,240/$1.
Year-on-year, the Naira has depreciated by 70.5% in the parallel market, closing the third quarter of 2024 at N1,705 per dollar, compared to an average of N1,000/$1 in September 2023.