The Nigerian naira has continued its upward trajectory against the US dollar in the official foreign exchange (FX) market, even as there was a decline in dollar supply from market participants on Monday.
Data from the FMDQ Securities Exchange revealed that the naira appreciated by 0.56 percent, with the dollar quoted at N1,136.04 on Monday. This marks an improvement compared to N1,142.38 quoted on Friday at the Nigerian Autonomous Foreign Exchange Market (NAFEM).
Throughout Monday’s trading session, the naira reached a four-month high, with the intraday high closing at N1,227 per dollar, stronger than the N1,265/$ recorded on Friday. The intraday low also closed positively at N1,000 on Monday, compared to N1,100 on Friday.
Despite the positive movement of the naira, there was a decrease in dollar supply, with transactions conducted by willing buyers and sellers dropping by 10.57 percent to $251.60 million on Monday from $281.34 million recorded on Friday at the NAFEM.
However, despite the drop in official market supply, the naira’s performance on Monday sparked optimism among traders, with some projecting further appreciation. On the black market, the naira rose to N1,115 against the dollar, with traders quoting rates of N1,118 and N1,120 for dollar transactions on the parallel market.
The sustained strength of the naira at the official market despite fluctuations in dollar supply reflects ongoing dynamics in Nigeria’s foreign exchange landscape, with market participants closely monitoring developments for potential impacts on currency movements and trade activities.
