Naira Declines Against Dollar as FX Market Activity Slumps

On September 28, the Nigerian naira depreciated against the US dollar, closing at N1,331.32, which is a decline of N1.81 or 0.14% from the previous session's N1,329.51. The naira also weakened against the British pound, closing at N1,766.01, down N3.61 from N1,762.40.

However, it gained against the euro, closing at N1,512.79, an increase of N2.72 from N1,515.51. The turnover in the foreign exchange market dropped by 77.7% to $24.731 million, down from $111.064 million on the previous Friday, with the number of transactions decreasing to 37 from 108.

This slowdown in trading activity among banks and financial institutions coincided with the US dollar's strength in global markets, influenced by expectations surrounding American monetary policy. Market analysts at GTFund Managers suggested that the naira might stabilize despite the stronger dollar, citing potential support from improved inflows, including oil receipts and capital importation.

The Central Bank of Nigeria (CBN) has maintained a $150,000 weekly ceiling for Bureau De Change operators.