By Seun Ibiyemi
The Nigerian currency, the Nigerian naira, recorded mixed performance against the United States dollar in trading on Monday as foreign exchange market volatility persisted.
Data from the Nigerian Foreign Exchange Market (NFEM) showed that the naira traded around ₦1,391 per dollar during Monday’s session, reflecting slight movements as traders adjusted positions in the market.
The local currency opened the day at about ₦1,384.74/$ before weakening slightly during trading to around ₦1,391.83/$, highlighting moderate fluctuations in the official market.
Reports also indicated that the naira experienced slight easing against the dollar at the start of the new trading week as market participants responded to changing foreign exchange supply and demand conditions.
Read also: Naira records mixed performance across FX markets
At the parallel market, the dollar traded between ₦1,400 and ₦1,410, reflecting continued pressure on the local currency outside the official window.
Analysts attributed the movement to seasonal demand for foreign exchange, remittance flows and global market developments affecting investor sentiment.
Market observers, however, noted that the naira has shown relative stability in recent days compared to previous weeks, with fluctuations remaining within a narrow band.
Economic analysts say the performance of the naira in the coming weeks will depend largely on foreign exchange inflows, external reserves, and the effectiveness of policy interventions by the Central Bank of Nigeria to stabilise the currency market.
Nigeria’s foreign reserves, which recently crossed the $50 billion mark, are expected to support liquidity in the FX market and help moderate volatility in the short term.
The naira remains the official currency of Nigeria and its performance continues to be closely watched by investors, businesses and policymakers due to its direct impact on inflation, import costs and overall economic stability.
