In the last week, foreign exchange (forex) transactions at the Nigerian Autonomous Foreign Exchange Market (NAFEM) window rose by 276.1 per cent to $1.7 billion.
NAFEM is the singular formal market trading segment for investors, exporters, and end-users.
With the abolition of multiple exchange rates by the Central Bank of Nigeria (CBN), forex trades are made at exchange rates determined by prevailing market circumstances, thus ensuring efficient and effective price discovery in the Nigerian forex market.
In a report at the weekend, Afrinvest West Africa reported increased activities at the forex window. However, naira exchange rates differed across the formal and parallel markets.
According to the report, although the naira lost 2.4 per cent against the dollar to settle at N1,169.99 at the NAFEM official window, it appreciated by 7.4 per cent to close at N1,145 to the dollar week-on-week at the parallel market.
Analysts expected sustained naira appreciation as CBN keeps short-term remedies to strengthen the local currency.
“In the currency market, the activity level in the NAFEM window soared to 276.1 per cent week on week to $1.7 billion while the naira lost 2.4 per cent against the dollar to settle at N1,169.99 to the dollar.
Meanwhile, at the parallel market, the naira closed at N1,145 to the dollar indicating 7.4 per cent appreciation, week-on-week,” the report stated.
