The Naira displayed a resurgence in strength on Monday, recording a 0.30 percent increase in its value as the demand for dollars saw a decline in the parallel market, commonly referred to as the black market.
By the close of Monday’s trading session, one dollar was exchanged for N995, a positive shift from the N998 rate observed earlier in the day.
Currency dealers attributed the Naira’s appreciation to a reduction in demand, as the foreign exchange market anticipates policy actions from the new Governor of the Central Bank of Nigeria.
Conversely, at the Investors’ and Exporters’ (I&E) forex window, Nigeria’s official foreign exchange market, the Naira experienced a 3.40 percent depreciation, with one dollar quoted at N773.25 on Friday, compared to N738.00/$1 quoted on Thursday.
Earlier on Monday, Nigeria’s Naira displayed a resurgence in strength. The currency had encountered a 0.30 percent depreciation against the dollar in the black market as the foreign exchange market resumed trading following the weekend.
The ongoing depreciation of the Naira has been attributed to robust demand for the US dollar. Additionally, various factors such as fiscal policies, external trade dynamics, and global market trends, including inflation rates, interest rates, policy events, and geopolitical factors, play significant roles in influencing the Naira’s performance, according to Stears Africa FX Monitor, a data and intelligence company.
Last Thursday, Nigeria’s Central Bank postponed a rate-setting meeting known as the Monetary Policy Committee (MPC), initially scheduled for September 25-26.
In a statement( Naira displayed a resurgence in strength) issued on Friday, the apex bank noted that Olayemi Cardoso, the newly nominated CBN Governor by President Bola Ahmed Tinubu, has formally assumed his duties in an acting capacity, pending confirmation by the Senate. Source and visit thedailycourierng for your daily news