The foreign exchange (FX) market witnessed a notable 12.02% increase in dollar supply, leading to a strengthened Nigerian naira in the official market on Monday.
Post-Monday trading, the Naira experienced a 5.26% gain, with the dollar quoted at N750.14 compared to Friday’s rate of N791.75 at the Autonomous Foreign Exchange Market (NAFEM), as reported by FMDQ data.
The surge in dollar supply was attributed to increased activity among willing buyers and sellers, contributing to a 12.02% rise in the daily FX market turnover, reaching $176.75 million on Monday, up from $157.78 million on Friday.
However, at the parallel market, commonly known as the black market, the naira depreciated to N1,140 per dollar on Monday due to heightened demand.
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This marked a 0.44% decline from the N1,135 per dollar recorded on the preceding Friday. Notably, some traders at CMS sold dollars at N1,100 during the morning session, while in Ibadan, one dollar was exchanged for N1,150, and at the Lagos Airport, it was priced at N1,145/$1.
The trajectory of the naira’s value exhibited a notable fluctuation, reaching a peak free fall of N1,310 per dollar on October 24, 2023, before stabilizing at N1.020/$1 on November 3, 2023, according to data compiled by BusinessDay.
