Nigeria’s national currency, the Naira, depreciated in value against the US dollar at black market on Monday and traded at an average rate of N759/$1, representing a decrease of 0.26% in value compared to the N757/$1 it traded last Friday at the unofficial FX market.
Some FX dealers in the Federal Capital Territory (FCT) said that the local currency’s depreciation was due to low business in the early hours of the day.
One of the FX dealers at Wuse Zone 4 axis, Mallam Adamu, however said that would rebound before Wednesday as businesses will boom.
The Central Bank of Nigeria (CBN) has been supplying FX to the official and unofficial markets over the past years as part of its monetary efforts to achieve exchange rate stability for the local currency against other foreign currencies, the
It stopped the FX interventions in the parallel market early in March 2020 following its findings that some FX dealers were abusing the privilege by engaging in FX round-tripping.
Experts believe that the local currency will strengthen in value its exchange rate against other currencies at the parallel market in the next few months as the new FX policy measure of the CBN which authorized deposit money banks (DMBs) and FX dealers to trade based on market-determined rates at the FX markets gain traction.
In addition, they projected that the FX policy will be complemented by other fiscal policy measures of the government begin to positively impact on the economy and by so doing, improve the local currency’s gains at the FX markets.
