In the initial trading session of May at the NAFEM window, the Naira experienced a small decline, settling at N1,402.67 to the dollar, marking a 0.83% decrease from the previous close in April. Throughout the day, the Naira fluctuated between a peak of N1,445 and a low of N1,299.42 against the dollar, resulting in a significant spread of N145.58.
Despite the slight depreciation, the volume of dollar transactions rose modestly by 3.32%, reaching $232.84 million. Conversely, in the parallel market, the Naira weakened further to N1,380 per dollar on May 2nd, indicating a 1.45% fall from the previous rate.
However, the gap between the parallel market and NAFEM rates narrowed to N22.67 from the previous N40.96. On a positive note, the Stanbic IBTC Nigeria PMI reported a slight uptick to 51.1 in April, attributed to the Naira’s strengthening, which eased inflationary pressures and boosted business activity in Nigeria to a three-month high.