*As FX trading on Bloomberg BMatch system begins
The Naira, on Monday, recovered marginally against the dollar in the parallel market as the first foreign exchange (FX) trading day held on the Electronic Foreign Exchange Matching System (EFEMS) via the Bloomberg BMatch System.
In the official foreign exchange market, however, the Naira depreciated by 1.69 percent as the dollar was quoted at N1,672.69 on Friday, compared to N1,644.86 on Thursday in the Nigerian Autonomous Foreign Exchange Market (NAFEM).
Foreign exchange reserves reached a 34-month high in November, closing at $40.2 billion despite a slight dip towards the end of the month, according to a report by Afrinvest Securities Limited. This represents a 1.1 percent month-on-month growth, equivalent to an increase of $436.2 million.
In the NAFEM window, average daily turnover rose by 16 percent month-on-month to $365.2 million. Consequently, the Naira appreciated by 0.2 percent and 0.3 percent month-on-month against the U.S dollar, trading at N1,672.69/$1 in the NAFEM window and N1,720.00/$1 in the parallel market.
Looking ahead to December, the Naira is expected to maintain its positive trajectory, supported by improved sentiment, bolstered reserves, and enhanced market liquidity.
Afrinvest anticipates that the Naira will continue to trade within similar ranges, provided there are no unexpected disruptions.
* Media Report