The Nigerian naira experienced a slight decline against the US dollar at the Nigerian foreign exchange market (NFEM) on Monday, closing at N1,605.62 per dollar, up from N1,602.18 on Friday.
This depreciation occurred in the absence of Central Bank of Nigeria (CBN) intervention sales, which typically provide support to the local currency.
In contrast, the parallel market saw the naira appreciate by 1.25% to N1,600, likely due to anticipation of the end of FX sales to Bureau de Change (BDC) operators scheduled for May.
According to AIICO Capital Limited, the interbank FX market witnessed heightened demand, with the US dollar and naira pair trading between N1,601.98 and N1,611.00. Analysts expect CBN participation to maintain the naira’s stability in the near term.
FX inflow declined 10% to $668 million last week, with the CBN accounting for 27.73% of the total inflow. External reserves rose to $38 billion due to fresh accretion.
Meanwhile, global markets saw oil prices decline over $1 per barrel after OPEC+ announced plans to increase output, while gold prices climbed over 2% due to safe-haven demand and a weaker US dollar.
