The naira began the week on a softer note, closing at N1,604.48/$1 in the official foreign exchange market on Monday. This is a slight depreciation from its previous close of N1,603.78/$1.
The decline shows cautious market sentiment following last week’s underperformance of the Nigerian currency against the US dollar, which ended the week lower.
In the parallel market, the naira traded at N1,605/$1, a 0.19% appreciation from Friday’s closing rate of N1,608/$1.
Meanwhile, the British pound opened the week at N2,032/£1, down slightly from N2,030/£1. The naira, however, held steady against the euro, maintaining a rate of N1,705/€1.
The growing demand pressure in the Nigerian Foreign Exchange Market is weighing on the naira. Despite the publication of the Balance of Payment report by the Central Bank of Nigeria (CBN) last week, highlighting a boost in Nigeria’s external reserve, the market pressure did not dwindle as the naira continued to witness significant pressure and the value of the naira continued to fall.
The CBN’s intervention has helped the currency in the foreign exchange market, and the continuous support of the CBN will be paramount in stabilizing the market.
