On Monday, the naira appreciated to 1,339.33/$, gaining 9.68% over Friday's rate of 1,482.81/$. FMDQ data revealed a significant decline in daily turnover, dropping to $180.80m from $556.25m on Friday, marking a 67.50% decrease.
At the official market, the naira saw an intraday high of N1,501 and a low of N1,310 to the dollar on Monday. Meanwhile, in the black market, the naira depreciated by 1.32%, trading at N1,520 compared to Friday's rate of N1,500.
Central Bank of Nigeria Governor Olayemi Cardoso attributed recent fluctuations in the naira's value to seasonal demand, describing it as a result of the interaction between supply and demand in a freely functioning market. This was discussed during the post-Monetary Policy Committee meeting press briefing last Tuesday.
Additionally, CBN data showed a 42% year-on-year decline in forex demand for importation and other activities. In 2023, $21.12bn was allocated to 19 sectors, a 41.9% drop from $29.98bn in 2022. The CBN's adoption of a floating exchange rate system in June 2023 led to a significant depreciation of the naira against the US dollar and other global currencies.
