The Naira yesterday depreciated to N1, 590 per dollar in the parallel market
from N1,580 per dollar on Monday. Similarly, the Naira yesterday depreciated to N1,582.09 per dollar in the Nigerian Autonomous Foreign Exchange Market, NAFEM.
Data from FMDQ showed that the indicative exchange rate for NAFEM rose to N1,582.09 per dollar from N1,570.99 per dollar on Monday, indicating N11.1 depreciation for the naira.
The volume of dollars traded in the market declined by 18.2 per cent to $201.43 million from $246.44 million traded on Monday.
Consequently, the margin between the parallel market and NAFEM rate narrowed to N7.91 per dollar from N10.8 per dollar on Monday.
Commenting, Isa Garba , a currency trader, attributed the Naira depreciation to increased demand and low supply of the dollar.
“When you see the naira closing the market at an appreciation, it means that there was increased demand and adequate supply of dollar during the period.
Today the naira depreciated against the dollar by N10. I bought a dollar at N1580 and sold it for N1,590 as against yesterday. Today there is less supply of dollars. The dollar was traded at N1,600 per dollar this morning and closed at N1,590.
“Due to the low supply, few traders were present in the market adding to the demand and supply pressure.”