Official Market Sees Naira Dip To ₦1,353.5/$
By OBIOMA TORI
THE naira recorded a slight depreciation in the official foreign exchange market on Monday, closing at ₦1,353.5 per dollar, according to data published by the Central Bank of Nigeria (CBN).
The local currency weakened from ₦1,348/$ recorded last Friday, reflecting mild pressure in the Nigerian Foreign Exchange Market (NFEM). The movement comes as the apex bank concludes its 304th Monetary Policy Committee (MPC) meeting in Abuja on Tuesday, where interest rate decisions and broader monetary policy directions are expected.
Intraday Movements
Intraday trading data showed that the naira traded at a high of ₦1,354.5/$ and a low of ₦1,343/$ before settling at a simple average rate of ₦1,349.24/$. The fluctuation indicates moderate volatility during the trading session, although the overall movement was relatively contained.
Market analysts attributed the slight depreciation to cautious positioning by investors and market participants ahead of the MPC’s policy announcement. Monetary policy decisions often influence liquidity conditions, interest rates, and overall demand for foreign exchange.
Parallel Market and Reserves Trend
While the official window showed mild weakness, the parallel market recorded marginal gains. The naira strengthened to ₦1,358/$ from ₦1,361.5/$ quoted on Friday, narrowing the gap between the official and unofficial segments of the market.
Meanwhile, Nigeria’s external reserves continued their upward trend, providing some buffer for the currency amid persistent demand for foreign exchange. The sustained build-up in reserves is seen as supportive of the CBN’s efforts to stabilise the market.
As stakeholders await the outcome of the MPC meeting, attention remains focused on whether the CBN will maintain its current policy stance or adjust rates in response to inflationary pressures and exchange rate dynamics.
