The Nigerian naira recorded mixed movements against the United States dollar on Monday, weakening at the parallel market while gaining slightly at the official Nigerian Foreign Exchange Market (NFEM).
At the parallel market, the naira depreciated to ₦1,420 per dollar from ₦1,406/$1 recorded at the weekend, reflecting increased pressure in the informal foreign exchange market.
However, the local currency appreciated at the official market, with the NFEM exchange rate improving to ₦1,380.5 per dollar from ₦1,381.7/$1 last weekend.
Data from the Central Bank of Nigeria (CBN) showed that the naira gained ₦1.2 at the official market, indicating a slight improvement in formal foreign exchange trading.
The different movements across both markets widened the gap between the official and parallel exchange rates to ₦39.5 per dollar, compared with ₦24.3 per dollar recorded at the weekend.
Meanwhile, trading activity at the official foreign exchange market declined, as interbank turnover fell by 21.2 per cent to $86.13 million from $71.04 million recorded during the previous trading session.
Market analysts continue to monitor foreign exchange liquidity, dollar supply and Central Bank interventions as key factors that could influence the naira’s direction in the coming days.
