The naira came under renewed pressure at the Nigerian foreign exchange market on Wednesday, September 9, weakening by N11.10 against the US dollar to close at N1,334/$ from N1,322.90/$ recorded in the previous trading session. The latest movement represents a 0.84% depreciation, interrupting the currency’s recent run of gains in the Nigerian Foreign Exchange Market (NFEM).
Despite the naira’s decline, activity in the interbank foreign exchange market increased significantly during the session. Interbank FX turnover jumped by 69.82% to $94.43 million, compared with $55.60 million recorded on Tuesday. The increase represents an additional $38.82 million in transactions, highlighting a sharp rise in trading activity even as the local currency lost ground against the dollar.
Market data showed that the naira traded between N1,321.50/$ and N1,334/$ during Wednesday’s session, with a weighted average exchange rate of N1,329.21/$ and a simple average of N1,329.44/$. The market also recorded 86 interbank deals, up from 58 deals the previous day, representing a 48.28% increase in the number of transactions.
Wednesday’s decline comes after the naira had strengthened to N1,320/$ on September 7, following a broader appreciation trend that saw the currency move from N1,349.99/$ on August 24. At N1,334/$, the naira is now N14 weaker than its September 7 level, although it remains about N15.99 stronger than its August 24 position. Meanwhile, Nigeria’s external reserves recently crossed the $54 billion mark, supported by improved foreign exchange inflows and stronger oil production.
The latest figures show that Nigeria’s FX market remains highly active, with increased transaction volumes not necessarily translating into immediate gains for the naira. As global currency movements, oil earnings, foreign exchange inflows and domestic dollar demand continue to shape market conditions, traders and businesses will be watching closely to see whether the naira can regain its recent momentum in the coming sessions.
source: nairametrics
