The Nigerian naira strengthened to 1,320 per dollar on September 7, while daily turnover on the country’s foreign exchange market fell sharply to $107.07 million.
Data from the Nigerian foreign exchange market showed a 78.4% decline in daily turnover compared with the $495.70 million recorded on the previous Friday. Despite the sharp contraction in market activity, the naira appreciated by 0.19%, moving from 1,322.50 to 1,320 naira per dollar.
The development comes as foreign exchange liquidity remains a key factor in Nigeria’s efforts to stabilise the macroeconomic environment. Exchange-rate stability remains particularly important for companies dependent on imported equipment, raw materials and intermediate goods.
Liquidity Remains Under Close Watch
The sharp decline in trading volumes indicates significantly weaker market activity at the beginning of the week. For importers and exporters, exchange-rate stability remains essential for managing costs, investments and international obligations.
The naira’s trajectory will also remain important for industrial companies exposed to imported machinery and inputs. Nigerian monetary authorities therefore continue to face the challenge of improving market liquidity while containing inflationary pressures associated with exchange-rate fluctuations.
