Naira Sees Mixed Fortunes in FX Markets

The Nigerian naira experienced divergent trends across various segments of the foreign exchange (FX) market on Monday.

In the parallel market, the naira depreciated further, reaching N1,490 per dollar. This marks a 0.34% decline compared to the N1,485 rate observed on June 14. Bureau de change operators quoted buying and selling rates at N1,460 and N1,490 respectively, retaining a profit margin of N30.

Meanwhile, at the official window overseen by the FMDQ Exchange, the naira edged downwards by 0.02% to N1,483.02 against the dollar, from N1,482.72 previously reported on June 14. The official market saw a daily trading range between N1,390 and N1,514.82 per dollar, with a reported FX turnover of $150.73 million.

The disparity between the official and parallel market rates now stands at N6.98. This fluctuation comes amidst projections by Fitch Ratings that the naira could stabilize around N1,450 per dollar by the end of the year. Gaimin Nonyane, director of Middle-East and Africa sovereigns at Fitch Ratings, emphasized expectations of reduced volatility in the naira by the third quarter of 2024, contingent on the momentum of FX reforms.

The FX market continues to be influenced by various economic factors, shaping expectations for the naira’s trajectory in the coming months.