The Nigerian naira witnessed a modest depreciation against the United States dollar in the authorized forex market on Monday, according to market data released by FMDQ.
Closing the day’s trading session, the naira settled at N1,508.99/$1, slightly weaker compared to the N1,505.30/$1 recorded in the previous segment last Friday. Throughout the trading day, the domestic currency fluctuated between an intraday high of N1,536.00 and a low of N1,441.00 before stabilizing at the closing rate.
The spot market segment reported a total foreign exchange turnover of $122.31 million, highlighting the ongoing activity and demand for forex transactions despite the slight depreciation.
Meanwhile, at the parallel market, the dollar registered a marginal gain after slipping marginally in the previous session. Unofficial market data indicated the dollar was exchanged at N1,498.821 midday on Monday. However, currency traders in Abuja reported the greenback eventually closed at N1,500/$1 by the end of the day, compared to N1,525 recorded last Friday.
In recent months, the naira’s exchange rate against the dollar has maintained stability within the range of N1,400 to N1,500 across both official and unofficial markets. This stability comes amidst ongoing efforts by the government and the Central Bank of Nigeria (CBN) to stabilize the local currency amidst external economic pressures and domestic market dynamics.
The slight depreciation observed today underscores the delicate balance maintained in the forex market, where fluctuations are closely monitored by investors, traders, and policymakers alike. As economic conditions evolve, market participants remain attentive to external factors influencing the naira’s performance and its implications for broader economic stability.
