The naira appreciated against the dollar across the foreign exchange (FX) market segments on Monday, supported by improved liquidity in the interbank market and rising external reserves.
Data published by the Central Bank of Nigeria (CBN) showed that the naira gained N6.46 against the dollar, with the greenback quoted at N1,366.79 on Monday, compared with N1,373.25 recorded on Friday at the Nigerian Foreign Exchange Market (NFEM) window. This represents an appreciation of 0.47 percent.
The local currency’s performance was driven by stronger liquidity conditions in the interbank market. Total turnover at the interbank segment rose significantly to $117.93 million on Monday from $78.84 million recorded on Friday. This represents an increase of $39.09 million, or 49.58 percent.
The number of transactions executed in the interbank market also increased substantially, rising by 49.09 percent to 164 deals on Monday from 110 deals recorded on Friday, reflecting stronger trading activity among market participants.
Data on total turnover and the number of deals at the NFEM window were not available as of the time of filing this report.
