The naira appreciated to 1,339.33/$ at the close of trading on the official window on Monday, gaining 9.68 per cent from Friday’s rate of 1,482.81/$.
According to FMDQ data, which oversees the Nigerian Autonomous Foreign Exchange Market, daily turnover dropped significantly to $180.80 million from $556.25 million on Friday, marking a 67.50 per cent decline.
At the official market, the naira traded at an intraday high of N1,501 and an intraday low of N1,310 to the dollar on Monday. Meanwhile, in the black market, the naira traded at N1,520, reflecting a 1.32 per cent depreciation from N1,500 on Friday.
The local currency had closed flat against the dollar on Friday, ending the week marginally strong at the official foreign exchange market after weeks of weakening. The Central Bank of Nigeria Governor, Olayemi Cardoso, attributed this fluctuation to seasonal factors.
He explained this at the post-Monetary Policy Committee meeting press briefing last Tuesday in Abuja. “Members further observed the recent volatility in the foreign exchange market, attributing this to seasonal demand, a reflection of the interplay between demand and supply in a freely functioning market system,” Cardoso said.
Meanwhile, the demand for foreign exchange by individuals and companies for importation and other forex-related activities fell 42 per cent year-on-year, according to the latest data from the CBN.
An analysis of the total sectoral utilisation of foreign exchange revealed that 19 sectors and services received $21.12 billion in forex allocation in 2023. This figure represented a 41.9 per cent or $8.87 billion reduction from the $29.98 billion disbursed to industry players in 2022, according to the CBN’s quarterly statistics report.
