Nigeria: Naira Loses Ground, Trading at 1,180/$ Following Recent Gains

The Nigerian naira has weakened in recent trading, opening at 1,180 naira to the US dollar on Monday, compared to 1,150 naira to the dollar on the preceding Friday, as reported in the parallel market. Data from AbokiFx revealed that the naira was being bought and sold at 1,170 naira/$ and 1,180 naira/$ on Monday, representing a 2.5% difference, or a 30 naira depreciation.

Dr. Aminu Gwadabe, President of the Association of Bureaux De Change Operators of Nigeria, acknowledged that the naira had strengthened against the dollar in the parallel market towards the end of the previous week. He emphasized that determining the naira’s price can be challenging, as it operates in a competitive and liberalized market where price mechanisms are not easily controlled. Instead, the market dynamics of supply and demand play a significant role.

In contrast, at the Investor & Exporter forex window, the naira opened at 794.70 naira/$, reached a peak of 998 naira/$, and ultimately closed at 993.82 naira/$ on Monday. This was compared to the 804.11 naira/$ it traded at on the preceding Friday, based on data obtained from the official trading platform, FMDQ. The total turnover at the official market on Monday was $88.31 million, as reported by FMDQ.