Naira weakens by 0.30% against dollar as FX market reopens

By Sodiq Adelakun

The Naira has experienced a slight decline in value against the US dollar as the foreign exchange market reopened on Monday.

According to data from Abokifx and street traders, one dollar now trades at N998, compared to N995 on Friday at the parallel market.

At the Investors’ and Exporters’ forex window, the official foreign exchange market in Nigeria, the Naira depreciated by 1.32 per cent, with one dollar quoted at N747.76 on Friday, down from N738.00 on Thursday.

The ongoing depreciation of the Naira has been attributed to high demand for the US dollar.

Meanwhile, factors such as fiscal policies, external trade, global market trends, inflation rates, interest rates, policy events, and geopolitical factors all play a role in influencing the performance of the Naira, according to Stears Africa FX Monitor, a data and intelligence company.

The Central Bank of Nigeria recently postponed a rate-setting meeting, known as the Monetary Policy Committee, which was scheduled for September 25-26.

The bank stated that Olayemi Cardoso, the newly nominated CBN governor by President Bola Ahmed Tinubu, has assumed duty in an acting capacity, pending confirmation by the Senate.