Naira surges to ₦1,600 against dollar in black market

However, the situation was different in the Nigerian Autonomous Foreign Exchange Market (NAFEM), where the Naira's depreciation to ₦1,586.11 per dollar from ₦1,543.84 per dollar—a loss of ₦42.27 raises concerns about the currency's stability.

The data from FMDQ, which revealed the contrasting movements, is crucial in understanding the challenges facing the official exchange rate. 

The report also indicated that the volume of dollars traded in NAFEM plummeted by 30 percent, with only $120.2 million traded compared to $171.79 million the previous day.

The decline in NAFEM's turnover and depreciation have narrowed the margin between the parallel market and the official exchange rate. 

The difference between the two rates dropped to ₦13.89 per dollar from a previous ₦71.16 per dollar, indicating a significant shift in the currency market landscape.

Pulse Nigeria reported that Naira appreciated at the official market in July, trading at ₦1,566.82 to the dollar.

Data from NAFEM at the time showed that the Naira gained ₦14.83.

This represents a 0.937% gain compared to the previous trading date when it exchanged at ₦1,581.65 to a dollar.

However, the total daily turnover increased to 273.14 million dollars, up from 108.16 million dollars recorded in July.

Market analysts are closely monitoring the situation, as the Naira's movements reflect broader economic pressures and demand for foreign exchange.