Naira Shows Resilience, Hits ₦1,339.33/$ At Official Exchange

Naira Shows Resilience, Hits ₦1,339.33/$ At Official Exchange

The Nigerian Naira witnessed a notable surge against the US dollar on Monday, closing at 1,339.33/$ in the official foreign exchange market. This represented a substantial 9.68 percent climb from Friday’s rate of 1,482.81/$, as per data sourced from FMDQ, the overseeing body of the Nigerian Autonomous Foreign Exchange Market……….CONTINUE READING

In contrast, the parallel (black) market experienced a slight depreciation of the Naira, where it traded at ₦1,520 to the dollar, marking a 1.32 percent decline from ₦1,500 on Friday.

This variance in performance underscores the persisting volatility within the forex markets, a phenomenon recently addressed by the Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, who attributed it to seasonal fluctuations.

During a press briefing in Abuja last Tuesday, Governor Cardoso highlighted the current market instability, attributing it to “seasonal demand and a freely functioning market system of demand and supply,” following the Monetary Policy Committee meeting.

Monday’s trading activity also revealed a significant reduction in forex turnover, with daily figures plummeting by 67.50 percent to $180.80 million from $556.25 million on Friday, indicating a notable decline in market transaction volume.

Moreover, recent data from the CBN indicates a 42 percent year-on-year decline in the demand for foreign exchange for importation and other forex-related activities. This decline is part of a broader reduction in sectoral forex allocation, evidenced by a 41.9 percent drop in 2023, as revealed in the CBN’s quarterly statistics report. Last year, 19 sectors and services collectively received a total of $21.12 billion in forex allocations, reflecting a significant decrease from the $29.98 billion disbursed in 2022