Naira strengthens by 0.6% against dollar in official market amidst reduced turnover
In a notable development, the Nigerian naira exhibited resilience on Monday as it appreciated against the dollar in the official market, marking a gain of 0.6%. According to data obtained from the official trading platform of the FMDQ Exchange, the naira traded at ₦1,136.04 to the dollar, reflecting an increase of ₦6.34 compared to the previous trading session.
This positive movement represents a 0.55% gain over Friday’s exchange rate, where the naira stood at ₦1,142.38 against the dollar. The uptick in the value of the naira against the greenback signals a favorable turn of events in the foreign exchange market.
Despite the encouraging uptrend, the total daily turnover at the official market experienced a decline, recording a figure of 251.60 million dollars on Monday, down from the ₦281.34 million dollars reported on Friday. This reduction in turnover suggests subdued market activity, possibly influenced by various factors such as market sentiment and economic conditions.
Meanwhile, at the Investor’s and Exporter’s (I&E) window, the naira maintained a fluctuating stance, trading within the range of ₦1,227 and ₦1,000 against the dollar. The I&E window serves as a crucial platform for investors and exporters to engage in foreign exchange transactions, providing them with the flexibility needed to conduct business operations effectively.
The strengthening of the naira against the dollar in the official market offers a glimmer of hope for market participants and stakeholders, signaling potential stability in the foreign exchange landscape. However, sustained efforts are required to address underlying challenges and ensure the long-term stability of the naira.
As the foreign exchange market continues to evolve, market participants are advised to closely monitor developments and adjust their strategies accordingly to navigate the dynamic currency landscape.
Further updates on the performance of the naira in the foreign exchange market will be provided as events unfold.
