The naira weakened to N1,681.42/$1 on the official market on Monday from N1,678.87/$1 last Friday, data from FMDQ shows. On the parallel market, the local currency fell to N1,735 per dollar on the parallel market yesterday compared to N1, 725/$1 last Friday, according to currency dealers.

In its latest rating report on Nigeria, leading credit rating agency, Fitch Ratings, said that despite the Central Bank of Nigeria’s (CBN) reform measures, the country is still grappling with fx market instability.

The report stated: “The Central Bank of Nigeria is initiating several measures to address FX liquidity challenges and formalise FX activity to support the currency. These include plans to introduce an electronic FX matching platform for all FX transactions effective December 1, 2024, to provide intra-day prices in real-time and enhance transparency.

“The CBN has also raised the monetary policy rate five times by a cumulative 850bp to 27.25 per cent since February 2024.

However, Fitch believes that the FX market has yet to stabilise, and the ongoing flexibility of the exchange rate remains to be tested.”

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