On Monday, the Naira showed signs of strength, increasing in value by 0.30 percent due to reduced demand for dollars in the parallel market, commonly referred to as the black market.

By the end of the trading day, one US dollar was exchanged for N995, compared to the morning rate of N998.

Currency experts suggested that this appreciation of the Naira was a result of decreased demand, while the foreign exchange market awaited policy decisions from Nigeria’s new Central Bank governor.

In the official foreign exchange market, known as the Investors’ and Exporters’ (I&E) forex window, the Naira experienced a 3.40 percent depreciation. On Friday, one US dollar was valued at N773.25, contrasting with the N738.00/$1 rate on Thursday.

Earlier in the day, the Naira had a 0.30 percent dip against the dollar in the black market as FX trading resumed after the weekend.

The persistent decline in the Naira’s value is attributed to high demand for the US dollar, alongside various factors including fiscal policies, external trade, and global market trends, such as inflation rates, interest rates, policy events, and geopolitical factors. This analysis comes from Stears Africa FX Monitor, a data and intelligence company.

The Central Bank of Nigeria postponed a Monetary Policy Committee (MPC) meeting scheduled for September 25-26, with Olayemi Cardoso, the new CBN governor nominated by President Bola Ahmed Tinubu, officially assuming his duties in an acting capacity, pending Senate confirmation, as per the apex bank’s statement on Friday.