On Monday, the naira experienced a decline in value in both the official and parallel markets. In the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira dropped to 1,523.85 per dollar, down from its previous rate of 1,509.67.
NAFEM facilitates forex trading for investors, exporters, and end-users at rates determined by current market conditions. The naira’s intra-day trading ranged between a high of 1,540.75 and a low of 1,474.05 per dollar. Market turnover increased to $133.46 million from $116.88 million on Friday, reflecting better liquidity.
In the parallel market, findings by The PUNCH showed that the naira weakened by 0.33%, closing at 1,528 per dollar compared to 1,523 per dollar on Friday.
Last week, reduced speculative activities provided some relief for the naira, strengthening it against the US dollar across different market segments.
At the end of the first half of 2024, the naira was reported as the world’s worst-performing currency. According to Bloomberg, depreciation, inadequate dollar liquidity, and market volatility have thwarted the Central Bank of Nigeria’s efforts to stabilize the naira. Egypt’s pound and Ghana’s cedi were also among the worst performers in the first six months of the year.
Meanwhile, S&P Global, an international financial analytics firm, has highlighted the potential of the Dangote Oil Refinery and Petrochemicals company to alleviate Nigeria’s forex challenges and bolster economic development.
