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Naira Strengthens in Parallel Market but Weakens in Official Exchange

The Naira appreciated in the parallel market on Monday, October 21, trading at ₦1,715 per dollar, up from ₦1,725 over the weekend. However, in the Nigerian Autonomous Foreign Exchange Market (NAFEM), it depreciated slightly to ₦1,603.16 per dollar, compared to ₦1,600.78 last Friday.

Data from FMDQ revealed that dollar trading volume increased by 2.4% in the official market, reaching $359.22 million from $350.72 million the prior weekend. This narrowing exchange gap between the parallel market and NAFEM now stands at ₦111.84 per dollar, down from ₦124.22 recorded on Friday.

Central Bank Governor Olayemi Cardoso commented on the weak Naira during the Nigerian Economic Summit, noting that a depreciated currency can boost Nigeria’s exports. He urged investors to recognize emerging opportunities, explaining that, despite challenges, a weaker naira positions the country more competitively in global trade.

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