The Nigerian naira kicked off the week on a high note, gaining ground against the US dollar in the foreign exchange market on Monday, according to official data from FMDQ. The naira strengthened to N837.77 per US dollar, marking a significant improvement from its N927.19/$1 closing figure on Friday.
This positive development reflects an impressive N89.42 gain, signaling a remarkable 10.67% increase in the local currency’s value compared to its position at the end of the previous trading week. The forex turnover at the close of Monday’s trading session stood at $73.94 million, indicating a substantial 32.87% growth compared to the preceding day.
In parallel, the naira maintained a relatively stable position at the parallel market, being quoted at N1165/$1 on Monday, consistent with the rate observed on Friday. Notably, Dayyabu Mistila, a Bureau De Change Operator in Wuse Zone 4, indicated that he was selling US Dollars at N1165/$1 while buying at N1,155/$1 on Tuesday morning.
Meanwhile, speaking at the Chartered Institute of Bankers of Nigeria (CIBN) 50th-anniversary event two weeks ago, Dr. Olayemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), acknowledged the detrimental impact of the persistent fluctuating exchange rate on business growth. He expressed confidence in the prospect of restoring macroeconomic stability and addressing fundamental flaws by implementing strategic measures and ensuring transparency and fairness in the bank’s operations.
Furthermore, financial expert Prof. Godwin Oyedokun attributed Nigeria’s forex crisis to weak economic fundamentals, low foreign reserves, increased external debts, and the existence of a double forex window. This diagnosis sheds light on the underlying factors contributing to the current state of the forex market.
Seamlessly balancing gains and stability in the forex market, the naira’s positive performance on Monday signals hope for strengthened macroeconomic stability and enhanced investor confidence.
