The naira weakened further against the U.S. dollar on Monday, closing at N1,605.63/$1 in the official market—a 0.22% decline from its previous rate of N1,602/$1, according to data from the Nigeria Foreign Exchange Market (NFEM).
The local currency faced renewed demand pressure during the trading session, swinging between a high of N1,611/$1 and a low of N1,601.98/$1 before settling at its final rate. This drop follows a similar decline last Friday, disrupting a week of relative calm in the foreign exchange market.
In contrast, the naira recorded gains in the parallel market, appreciating by 0.63% to close at N1,590/$1 compared to Friday’s close of N1,600/$1. However, against other major currencies, the naira showed further weakness—slipping by 0.24% against the British pound to close at N2,110/£1, and by 0.28% against the euro at N1,775/€1.
Monday’s performance underscores the continued volatility and fragility of Nigeria’s forex market. Analysts note that while marginal improvements in the parallel market provide some relief, fluctuations in the official window reflect lingering imbalances in demand and supply dynamics.
The Central Bank of Nigeria (CBN) is expected to sustain its intervention efforts to stabilize the naira and restore investor confidence amid global and domestic pressures on the currency.
