The volume of dollars traded on the Investor & Exporter forex window surged by 46.69 percent to $123.25 million on Monday, marking a significant increase from Friday’s turnover of $84.02 million.

Despite this rise, the naira experienced a depreciation of 1.96 percent, closing at N795.41/$ at the end of trading on Monday compared to N780.14/$ on Friday, as reported by data from FMDQ OTC Securities Exchange.

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Trading on Monday commenced at N780.83/$ and concluded at N795.41/$, with the naira reaching as high as N1099/$ and as low as N701/$ during the session.

On the parallel market, the naira continued its downward trend, depreciating by 4.55 percent to N1,150/$ from its Friday rate of N1,100/$.

Bureau de Change operators reported buying at N1,110/$ and selling at N1,150/$, while another trader, Kadir, noted selling rates at N1,150/$ and buying rates at N1,170/$.

The depreciation of the naira has persisted since the Central Bank of Nigeria ordered the free flow of the country’s exchange rate in June on the official Investor & Exporter forex window.

Previously, the naira traded at 471.67/$ on the official market in June and 765/$ on the parallel market.

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Economist Intelligence predicts that the naira will close 2023 at N810/$ on the official market, attributing the ongoing depreciation to the central bank’s return to guiding the exchange rate by limiting access to foreign exchange sales for banks and dealers quoting prices outside a preferred rate.

The report also emphasizes that factors like deeply negative short-term real interest rates require an orthodox monetary policy that the authorities have shown little appetite for, casting doubt on the success of a currency float over 2024-28.