The naira crashed to N1,612.24/$1 on Monday in the official market, a 2.89% decline from its
last close of N1,567.02/$1.
The Nigerian Foreign Exchange Market (NAFEM) experienced heightened demand pressure,
largely driven by foreign portfolio investors (FPI) seeking to exit the market amid global market
uncertainty.
The Central Bank of Nigeria (CBN) made efforts to stabilize the market by selling $124 million
between N1,595/$1 and N1,611/$1.
During the day’s trading, the naira traded between N1,590/$1 to as high as N1,655/$1 before settling at N1,612.24/$1.
A significant drop of 2.89% in a single-day trading session marks the biggest drop since the
beginning of the year.
This significantly shows growing instability in the currency market, driven
by continuous demand for foreign exchange.
The Nigerian currency did not fare well in the parallel market, with the naira declining by 0.64%
to N1,565/$1, from Friday’s close of N1,555/$1.
Trading against the British Pound, it fell by 0.50% to N2,000/£1, from a prior of N1,985/£1. Same with the euro where it dropped by 0.61% to N1,655/€1, down from N1,645/€1 on Friday.
The increase in foreign portfolio investors’ withdrawal from the market is driven by Trump’s
export tariffs slammed on many countries, consequently affecting the naira.
Market participants
anticipate the CBN’s continuous intervention in other to stabilize the market,
