The Nigerian Naira has experienced a 4.24% loss in value against the US Dollar at the official market due to a decline in dollar supply. This decrease comes after trading at the Nigerian Autonomous Foreign Exchange Market (NAFEM). In contrast, the Naira had briefly strengthened to N970 per dollar on the black market following positive sentiments regarding government plans to enhance dollar liquidity in the foreign exchange market.
Key Points:
- At the official market, the dollar was quoted at N809.02, compared to N776.14 on the previous Friday.
- Daily foreign exchange market turnover decreased by 11.30% to $87.65 million on Monday from $98.82 million recorded on Friday.
- In the parallel market (black market), the Naira opened and closed at N1,020 per dollar on Monday, after briefly appreciating to N970/$.
- Currency traders anticipate further appreciation of the Naira today in anticipation of dollar flows from willing buyers and sellers.
Impact: The fluctuation in the Naira’s value reflects the sensitivity of the currency to changes in dollar supply and market sentiment. This can have implications for businesses, trade, and investment in Nigeria.
