Victor EzejaThe Nigerian naira depreciated to N1,583.73 at the official market on Tuesday.
This represents N4.33 depreciation when compared to N1,579.40 per dollar that the naira traded on Monday, 26 May, according to exchange rate data published by the Central Bank of Nigeria (CBN).
Join our WhatsApp ChannelThe CBN data showed that the naira traded between N1,591 and N1,581 on Tuesday.The naira appreciated slightly on Monday by N1.04 from N1,580.44 per dollar on Friday, 23 May.
The naira also depreciated at the parallel market to N1,620 from the previous exchange rate of N1,610 per dollar.
Despite the depreciation recorded on Monday, analysts believe that the naira remains fairly stable in the foreign exchange market.
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A report by the Research Department of Coronation Merchant Bank Limited showed that exporters recorded the highest contribution of inflows into the FX market. While exporters accounted for 75.54 per cent of the total inflow, Foreign Portfolio Investors (FPIs) accounted for 9.72 per cent. Non-bank corporates brought in 9.61 per cent, CBN 2.98 per cent, while other sources accounted for 2.15 per cent.
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The report showed that Nigeria Foreign Exchange Market (NFEM) window recorded an inflow of $3.38 billion against $4.29 billion in the previous week.
The apex bank has continued to roll out measures to increase FX inflow to boost liquidity in the FX market and further strengthen the naira.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
