Lagos, Nigeria – The naira closed flat across various foreign exchange (FX) markets on Tuesday, as demand for the US dollar moderated. According to data from the Central Bank of Nigeria (CBN), the dollar was quoted at N1,534.10 at the close of trading, slightly lower than the N1,533.56 rate recorded on Monday at the Electronic Foreign Exchange Matching System (EFEMS).
On the other hand, authorized currency dealers quoted the dollar at a higher rate of N1,555, maintaining the same rate as the previous day. The FX market also saw a slight fluctuation, with the lowest exchange rate recorded at N1,522 per dollar, marginally weaker than N1,520 quoted on Monday.
In the parallel market, popularly known as the black market, the naira appreciated to N1,665 per dollar, up from N1,680 on Friday, reflecting a slight recovery in the informal sector of the FX market.
Market Insights
The FX market has been volatile in recent weeks, with fluctuations in the naira’s value against the dollar driven by various economic factors. However, Tuesday’s data signals a period of relative stability, as demand for dollars appears to have moderated, at least temporarily.
With fewer than two weeks left in 2024, market participants will be watching closely for any policy changes from the Central Bank of Nigeria (CBN) or further movements in dollar demand that could impact the naira’s trajectory in the final stretch of the year.
