The Naira appreciated further yesterday in the parallel market to N1,610 per dollar from N1,615 per dollar last Friday, as weak dollar demand persists.
However, the Naira depreciated to N1,495.6 in the official market. Data published by FMDQ showed that the indicative exchange rate for the Nigerian Foreign Exchange Market (NFEM) rose to N1,495.6 per dollar from N1,474.78 per dollar last weekend, indicating a N20.82 depreciation for the naira.
Consequently, the margin between the parallel market and NFEM rate narrowed to N84.4 per dollar from N141.4 per dollar last weekend.
The above development indicated N45 appreciation for the naira in the parallel from N1,655 per dollar last week Monday.
Similar in the official market, the Naira appreciated by N37.9 from N1,533.5 last week Monday.
The weak dollar demand driving the Naira appreciation is occasioned by the Chinese New Year holiday as well the market response to the launch of the foreign exchange code by the Central Bank of Nigeria, CBN last week.
Currency traders with significant dollar holdings sold in expectation of the fall in demand and exchange rate, boosting supply into the market.
