Key Points
- Parallel market closes at N1,510
- NAFEM closes at N1,508.99
- Volume of trading dropped by 34.9 per cent
The Nigerian currency, the Naira, exhibited a mixed performance in the foreign exchange market on Monday.
In the parallel market, the Naira strengthened, appreciating to N1,510 per dollar from its previous rate of N1,515 per dollar last Friday.
Conversely, the Naira depreciated in the Nigerian Autonomous Foreign Exchange Market (NAFEM), falling to N1,508.99 per dollar from its previous rate of N1,505.3 per dollar.
This data was reported by FMDQ.
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A significant decrease of 34.9 per cent was observed in the volume of dollars traded in the market. Trading volume dropped from $187.82 million last Friday to $122.31 million. This decline in trading volume may have contributed to the narrowing of the margin between the parallel market and NAFEM window rates, which reduced to N1.01 per dollar from N9.7 per dollar over the weekend.
The mixed performance of the Naira can be attributed to various factors, including changes in global economic conditions and domestic demand for foreign exchange.
The Central Bank of Nigeria (CBN) has been actively working to stabilise the currency and maintain a stable exchange rate through various interventions in the foreign exchange market.
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As the economy continues to evolve, investors and businesses will be closely monitoring the currency’s performance and its impact on trade and investment decisions. The ongoing efforts of the CBN to support the Naira, alongside market dynamics, will play a crucial role in determining the future trajectory of Nigeria’s currency in the foreign exchange market.
