The amount of dollars supplied at Nigeria’s official Forex Market, Autonomous Foreign Exchange Market (NAFEM), has risen by 46.69 percent to $123.25m on Monday.
Records show that on Friday, the volume of dollars in the official market was $84.02m. Notwithstanding this, naira depreciated in value by 1.96 per cent to N795.41/$ as of the close of trading on Monday after closing trading at N780.14/$ on Friday.
This was made known by FMDQ OTC Securities Exchange. On Monday, trading opened at N780.83/$ before closing at N795.41/$.However, the foreign exchange market (FX) resumed on Monday with the naira depreciating against the dollar based on a renewed demand pressure after appreciating for two trading days.
In a statement, the EIU pointed out the negative effects and pressure the monetary policy has on naira value.
It stated “However, other factors undermining the naira, such as deeply negative short-term real interest rates, require an orthodox monetary policy that the authorities have not demonstrated enough appetite for.”
” We therefore do not expect a currency float to succeed over 2024-28, although it seems likely that the fuel subsidy will end when the Dangote refinery is able to replace imports, from late 2024 onwards.”
Although, during the trading on Monday, dollar was sold for N1,130, representing 1.80 percent loss compared with N1,110/$1 sold on Friday on the black market.