Nigerian Naira Slips 0.30% as FX Trading Resumes Amidst Strong Demand for US Dollar

The Naira experienced a 0.30% decline in value against the US Dollar as the foreign exchange (FX) market resumed trading on Monday after the weekend hiatus.

Data sourced from abokifx and street traders indicates that the exchange rate currently stands at N998 for one US Dollar, a depreciation from the N995/$1 rate observed on the previous Friday in the parallel market.

In the Investors’ and Exporters’ (I&E) forex window, Nigeria’s official foreign exchange market, the Naira depreciated by 1.32%, with one US Dollar quoted at N747.76 on Friday compared to the N738.00/$1 rate reported on Thursday.

The sustained depreciation of the Naira can be attributed to robust demand for the US Dollar. Additionally, fiscal policies, external trade dynamics, and global market trends, encompassing inflation rates, interest rates, policy developments, and geopolitical influences, are significant factors influencing the Naira’s performance, as noted by Stears Africa FX Monitor, a data and intelligence company.

On Thursday, Nigeria’s Central Bank postponed a rate-setting meeting, known as the Monetary Policy Committee (MPC), initially scheduled for September 25-26.

A statement from the apex bank on Friday announced that Olayemi Cardoso, the newly nominated CBN governor by President Bola Ahmed Tinubu, officially assumed his role in an acting capacity as the CBN Governor, pending confirmation by the Senate.

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