Analysts anticipate that exchange rates will stabilize within a narrow range across various market segments, influenced by the Central Bank of Nigeria's heightened emphasis on strategic foreign exchange interventions.
Muazu Yakubu, a Bureau de Change operator at the Lagos airport, reported to The Punch that the naira was being sold for 1,748/$ and purchased for 1,742/$. Another operator, Mallam Faruq, noted that the currency was trading at 1,746/$ for sales and 1,740/$ for purchases on Lagos Island.
In the Nigerian Autonomous Foreign Exchange Market, located on the FMDQ Exchange, the naira depreciated to 1,670.65/$ on Monday, down from 1,600/$ on Friday, with a turnover of $284.93 million.
By the end of Monday's trading session, the naira in the official market reached a high of 1,677/$ against the US dollar and a low of 1,585.67/$.
Last week, in the parallel market, the naira lost three basis points week-on-week against the USD, settling at 1,740.00/$. In contrast, at the NAFEM window, the local currency appreciated by four basis points week-on-week, trading at 1,600/$.
Additionally, the Central Bank of Nigeria has entered into an agreement with the International Finance Corporation to enhance local currency financing for Nigerian enterprises and mitigate foreign exchange risks, as stated in a joint announcement on Monday.
The IFC, a member of the World Bank Group, aims to significantly increase its financing in Nigeria, targeting over $1 billion in the coming years. This partnership will allow the IFC to manage currency risks and boost its investments in Nigeria's naira across various sectors, including agriculture, housing, infrastructure, energy, small and medium-sized enterprises, and the creative industry.
“Many of these sectors require local currency financing, and IFC’s partnership with the central bank is a key tool in expanding access,” the statement added.