The naira improved slightly to N1,320 per dollar on Monday as trade in Nigeria’s official foreign exchange market slowed sharply to a lower level on a weekly basis, indicating a subdued start to the new trading week.
Figures from the Central Bank of Nigeria showed that turnover in the Nigerian Foreign Exchange Market closed at $107.07 million, representing a 78.4 percent decline from the $495.70 million on Monday, compared to N1,322.50/$ recorded on the previous day.
While the CBN’s foreign exchange market turnover was down sharply on a weekly basis, the local currency closed higher by 0.19 percent from N1,322.50/$ recorded last week.
The News Chronicle reports that Monday’s turnover was the lowest since April 2 when transactions closed at $73.90 million. The naira fluctuated between N1,318.50 and N1,322.50 per dollar during the day, narrowing the spread to one of the tightest in recent months as 119 trades were concluded.
The latest plunge follows a jump to $674.38 million on September 3 from $657.61 million a day earlier.
In addition, Nigeria’s external reserves have grown to $54.08 billion, the highest level since December 2008.
The improved level of reserves, alongside the naira’s recent strength, could give the foreign exchange market a needed fillip, despite the recent sharp fall in day-to-day turnover, which has left traders spooked.
