In an unexpected turn of events, Nigeria’s Naira made significant strides against the US dollar as trading commenced on Monday. FMDQ data revealed a notable increase as the Naira strengthened to N838.95 per dollar, marking a substantial gain of N51.79 or 5.79% from its previous closing rate of N890.54 on Friday.
Conversely, the parallel forex market witnessed a slight depreciation, quoting the exchange rate at N1,265 per US dollar, reflecting a marginal 0.40% decrease from the previous day’s closure.
The recent fluctuation in the Naira’s value coincides with the Nigerian government’s reception of a $2.25 billion foreign exchange boost loan from the African Import-Export Bank approximately a week ago. This development comes against the backdrop of the Central Bank of Nigeria floating the country’s currency on June 14 last year, resulting in ongoing volatility within the forex market.
Furthermore, a report by Media Talk Africa indicated a disconcerting trend in Nigeria’s headline inflation, which surged for the twelfth consecutive month to a staggering 28.92% in December, illuminating the economic challenges that continue to impact the nation.
The intricate interplay of these economic dynamics underscores the significance of monitoring Nigeria’s forex market closely, as it remains susceptible to both domestic and global influences.
