The Naira weakened to N1,658.97 per Dollar on Tuesday, October 15 at the Nigerian Autonomous Foreign Exchange Market (NAFEX) as the local currency fell by N106.05 or 6.8 percent to close at N1,658.97/$1 compared with Monday’s closing rate of N1,552.92/$1.

The daily supply of FX as measured by secondary data from FMDQ Securities Exchange Limited indicated that turnover slumped by $125.85 million or 36.6 percent to $217.86 million from $343.71 million.

The fall in the local currency came as the National Bureau of Statistics (NBS) released the headline inflation rate for September 2024 which showed that the Consumer Price Index rose to 32.70 percent.

This represents an increase of 0.55 percent from the August 2024 figure of 32.15 percent, after inflation dropped consecutively in the previous two months of July and August.

“In September 2024, the Headline inflation rate was 32.70% relative to the August 2024 headline inflation rate of 32.15%. Looking at the movement, the September 2024 Headline inflation rate showed an increase of 0.55% compared to the August 2024 Headline inflation rate.

“On a year-on-year basis, the Headline inflation rate was 5.98% points higher compared to the rate recorded in September 2023 (26.72%). This shows that the Headline inflation rate (year-onyear basis) increased in September 2024 when compared to the year-on-year in the preceding year (i.e., September 2023).

“Furthermore, on a month-on-month basis, the Headline inflation rate in September 2024 was 2.52%, which was 0.30% higher than the rate recorded in August 2024 (2.22%). This means that in September 2024, the rate of increase in the average price level is higher than the rate of increase in the average price level in August 2024,” the NBS report said.

Meanwhile it was a different outcome in the Parallel market, the Naira gained on the American currency as it closed at N1,663.71 to the US Dollar, a rise of N9.84 compared to N1,673.55/$1 it closed during the Wednesday trading session.

The Naira strengthened its value against the Pound Sterling in the official market by N16.41 to sell at N2,120.95/£1 compared with the preceding session’s N2,137.36/£1 and followed the same pattern against the Euro as it appreciated N13.39 to quote at N1,816.43/€1 versus the previous day’s rate of N1,829.82/€1.

The local currency also appreciated N4.07 to close at N1.197.59 per Canadian Dollar, compared to Monday’s N1,201.66 per CAD.

The Naira appreciated in the Nigerian Autonomous Foreign Exchange Market (NAFEM) as the local currency appreciated by 5.4 per cent and sold against the US Dollar at N1,552.92/$1 on Monday, October 14, as the domestic currency recorded an N88.25 gain versus N1,641.27/$1 which it was valued at the previous session on Friday.

This happened even as supply fell at the session as turnover published on the FMDQ Group website stood at $343.71 million indicating that the session’s turnover dropped by 44.3 per cent, indicating a decrease of $273.02 million compared to $616.73 million published the previous day.

US Dollar demand pressures eased at the beginning of the week following $50 million FX auction sales to local banks last week.

Equally, the domestic currency also witnessed gains against the Pound Sterling and the Euro. On the British currency, the local currency made a rise of N36.64 to wrap the session at N2,089.62/£1 from N2,126.26/£1 that it sold at the previous session.

Against the Euro, the Nigerian currency closed at N1,749.12/€1 versus N1,772.69/€1, indicating an N23.57 depreciation.

In the FX market, the Naira has been fluctuating for several months despite the Central Bank of Nigeria’s interventions.

The Central Bank of Nigeria(CBN) introduced the Electronic Foreign Exchange Matching System (EFEMS) in October 2024 for foreign exchange transactions in the NAFEM.

The Naira closed flat at N1,673.55 to the US Dollar, making no movement from the price it sold at the market last week.

Meanwhile, the Naira weakened its value marginally against the Pound Sterling in the official market by 67 Kobo to sell at N2,137.36/£1 compared with the preceding session’s N2,136.69/£1.

It followed a different route against the Euro as it appreciated 47 Kobo to quote at N1,829.82/€1 versus the previous day’s rate of N1,830.29/€1.

The local currency also pulled an 81 Kobo depreciation to close on the Canadian Dollar at N1,201.66 against Wednesday’s N1,202.47 per CAD.

The Naira closed the week weaker against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, October 11 to N1,641.27/$1, as the local currency lost 1.15 per cent at the specialised window, according to data obtained from FMDQ Securities Exchange.

The week’s closing value was down N18.70 compared to N1,622.57/$1 published in the preceding session on Thursday.

There was a surge in turnover recorded on Friday as secondary data showed an aggregate of $616.73 million cleared on record, compared to $145.56 million, a rise of $471.17 million or 323.7 per cent.

This is more than $543.5 million announced by the Central Bank of Nigeria (CBN) announced that it sold to authorised dealer local deposit money banks (DMBs) to reduce observed market volatility driven by high demand for commodity imports and seasoned demand for FX between September 6 and 30, 2024.

The rise in supply could be a result of fresh CBN intervention in the market after it had paused for the past two weeks.

In a different pattern, the local currency closed flat against the Pound Sterling and the Euro in the week’s closing session at the official FX market.

Trading against the British currency, the local currency closed at N2,126.26/£1 while it closed at the rate of N1,772.69/€1 against the Euro.

In the Parallel market, the Naira gained on the American currency as it closed at N1,673.54 to the US Dollar, a rise of 94 Kobo compared to N1,674.48/$1 it closed during the Wednesday trading session.

The Naira strengthened its value against the Pound Sterling in the official market by N3.70 to sell at N2,136.68/£1 compared with the preceding session’s N2,140.38/£1 and followed the same pattern against the Euro as it appreciated N7.54 to quote at N1,830.29/€1 versus the previous day’s rate of N1,837.83/€1.

The local currency also appreciated N8.59 to close at N1,202.47 per Canadian Dollar, compared to Wednesday’s N1,211.06 per CAD.