The naira experienced a marginal decline after its recent rally, posting marginal depreciation at both the official and parallel markets.
At the Nigerian Foreign Exchange Market (NFEM), the currency closed at N1,533.97/$, marginally lower than Friday’s closing rate of N1,533.93/$. This was a N0.04, or 0.003 percent depreciation.
Also, on the parallel market, the naira depreciated to close at N1,630/$ compared to the N1,590/$ it stood over the weekend. This was a N40 or a 2.5 percent decline.
The marginal depreciation followed a remarkable week of appreciation at both markets. The naira at the official market at the start of NFEM started at N1,662.77/$ before it closed last Friday at N1,533.93/$.
Last week’s rally was largely attributed to a combination of factors, including Nigeria’s successful $2.2 billion Eurobond issuance and the Central Bank of Nigeria’s (CBN) introduction of the Electronic Foreign Exchange Matching System (EFEMS), which has injected greater transparency and efficiency into the forex market.
Nume Ekeghe
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