The Nigerian naira experienced a marginal decline on Monday, following a week of significant appreciation, as it posted slight depreciation at both the official and parallel markets.
At the Nigerian Foreign Exchange Market (NFEM), the naira closed at N1,533.97/$, a slight drop from Friday’s closing rate of N1,533.93/$. This represented a depreciation of N0.04 or 0.003 percent.
In the parallel market, the naira depreciated more significantly, closing at N1,630/$ compared to N1,590/$ over the weekend. This reflected a decline of N40 or 2.5 percent
Last week, the naira rallied significantly, starting at N1,662.77/$ on Monday and closing at N1,533.93/$ on Friday in the official market. This strong performance was attributed to Nigeria’s successful issuance of a $2.2 billion Eurobond and the introduction of the Electronic Foreign Exchange Matching System (EFEMS) by the Central Bank of Nigeria (CBN). The EFEMS system has been credited with enhancing transparency and efficiency in the forex market.
The slight depreciation observed this week marks a pause in the naira’s recent rally, as analysts continue to monitor developments in the foreign exchange market.