On Tuesday, the Nigerian naira maintained its exchange rate with the US dollar at an average rate of N825 in the parallel market, also known as the black market. This rate remained unchanged from the previous day's closing rate in the same market segment. The naira had weakened by 0.48 percent against the dollar on Monday due to increased demand from end users.
During morning trading on Monday, the dollar was quoted at N825, compared to the average rate of N821 recorded on Friday. A trader reported that individuals, particularly those planning to travel for business or leisure, were the main buyers of dollars. The market had an adequate supply of dollars to meet this demand.
Meanwhile, at the Investors and Exporters (I&E) window, the naira experienced a 1.07 percent appreciation against the dollar. On Monday, the dollar was quoted at N795.28, while on Friday, it was quoted at N803.90, according to data from the FMDQ.
The daily turnover of the foreign exchange market, which reflects transaction volumes at the I&E window, decreased by 26.33 percent to $34.55 million on Monday, compared to $46.90 million recorded on Friday, as reported by the FMDQ.
Furthermore, on Friday, the naira witnessed its lowest-ever depreciation of 7.72 percent against the dollar, with the dollar being quoted at N803.90. This marked a significant decline from the previous day's close of N746.28 at the I&E window, as indicated by data from the FMDQ.
These developments highlight the ongoing fluctuations in Nigeria's foreign exchange market. The demand for dollars in the parallel market continues to drive the exchange rate, while the naira's performance at the I&E window demonstrates some degree of stability. Market participants will closely monitor these trends in the coming days, as they can have implications for businesses, travelers, and the overall economy.
