The naira has begun November on a downturn, depreciating against the dollar at the official foreign exchange market. On Monday, the Central Bank of Nigeria (CBN) reported that the naira fell to N1,347.94 per dollar, a decline from N1,346.26 recorded on the previous Friday. This represents a depreciation of N1.68 on the first trading day of the month.

In contrast, the parallel market showed stability, with the naira maintaining a rate of N1,390 per dollar, unchanged from the previous week. This divergence in exchange rates highlights the mixed sentiments currently influencing Nigeria's foreign exchange markets.

The recent fluctuations come amid a slight decline in Nigeria's external reserves, which dropped to $55.22 billion as of October 30, down from $55.24 billion the day before. This decrease in reserves could further impact the naira's performance in the coming weeks.

The CBN's data indicates that while the naira appreciated at the official market last Friday, the overall trend for the beginning of November points towards a challenging environment for the currency. Investors and market watchers will be closely monitoring these developments as they unfold, particularly in light of the ongoing economic pressures facing the nation.

As the new trading week progresses, stakeholders in the foreign exchange market are advised to remain vigilant as the situation evolves, with potential implications for both local and international investors.