The Nigerian Naira experienced a 0.22% depreciation against the US Dollar on Monday, closing at ₦1,383.58 at the Nigerian Foreign Exchange Market (NFEM).
This decline coincided with a contraction in liquidity, as data from the Central Bank of Nigeria (CBN) indicated a reduction in intraday turnover among authorized dealers.
Total interbank exchange volume fell to $145.29 million, a notable decrease from the $172.89 million recorded during the previous Friday’s session.
According to official reports, the spot exchange rate fluctuated between an intraday high of ₦1,391 and a low of ₦1,380.
Transactional activity also slowed, with the market closing 115 deals compared to the 141 deals finalized in the preceding window.
The downward trend extended to the informal sector, where the Naira weakened to ₦1,425 in the parallel market.
This movement reflects renewed selling pressure across both official and unofficial segments, following a week of persistent demand challenges.
Last week, the currency saw a depreciation of ₦26.67 in the official window, while the parallel market recorded a 1.06% week-on-week decline to settle at ₦1,420.
Despite these shifts, the spread between the two markets narrowed to ₦39.42, suggesting a continued, albeit gradual, alignment of exchange rates.
On the macroeconomic front, Nigeria’s gross external reserves saw a modest decline, settling at $49.48 billion.
Financial analysts remain watchful of global geopolitical developments, particularly the ongoing conflict between the United States and Iran, which has entered its fifth week.
With Brent crude oil prices currently on track for a record monthly surge due to the instability in the Middle East, there are expectations that increased oil receipts could eventually bolster foreign exchange inflows and enhance the nation’s dollar liquidity.
However, the immediate market sentiment remains cautious as global supply risks escalate.