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Naira Dips Against Dollar After Gaining for Days

December 10, 2024

A man exchanges Nigeria's currency Naira for US dollars in Lagos, Nigeria, on April 19, 2021. - Nigeria's economy was already struggling with a fall in the price of oil, Nigeria's major export, and a weak local naira currency, before the global pandemic struck. Now Nigeria's inflation has soared to a four-year high of more than 18 percent in March 2021, with food prices up 22.9 percent, according to the National Bureau of Statistics. (Photo by PIUS UTOMI EKPEI / AFP) (Photo by PIUS UTOMI EKPEI/AFP via Getty Images)

The naira settled at N1,538.50 per dollar in the foreign exchange market, marking a slight depreciation after a streak of appreciation.

According to the Central Bank of Nigeria’s data released on Monday, the naira stood at N1,538.50 per dollar, a small drop from N1,535 recorded on Friday—representing a N3.5 decline.

Similarly, in the black market, the naira weakened to N1,630 per dollar on Monday, compared to N1,600 reported last week.

This marks the first depreciation of the naira since the Central Bank of Nigeria introduced the Electronic Foreign Exchange Matching System (EFEMS) to enhance transparency in FX transactions.

The Centre for Promotion of Private Enterprise credited the naira’s earlier appreciation to the EFEMS initiative and a boost in Nigeria’s external reserves.