The naira appreciated against the dollar on the parallel market while stocks dropped at the end of trading on Monday as markets await the clearing of foreign exchange Backlog by Yemi Cardoso, the acting governor of the Central Bank of Nigeria(CBN).

Cardoso was recently appointed by President Bola Tinubu, alongside four deputy governors for a term of five years at the first instance, 'pending their confirmation by the Nigerian Senate'.

The naira pared some lossesto trade at 995 per US dollar on the streets on Monday after crashing to a new low of N1,050 last Friday. The official rate opened at N747 per US dollar. The gap, which disappeared in the first two days of the CBN's reform in June, has reopened due to the scarcity of dollars in the official market.

Some currency dealers said the naira appreciation followed a moderation in demand as the foreign exchange market awaits policy action from the new CBN governor.

At the stock market, the Nigerian Exchange Limited All-Share Index and equities market capitalisation depreciated by 0.66 percent or N242 billion to close at 66,882.64 points and N36.605 trillion from 67,324.59 points and N36.847 trillion respectively on Friday.

The CBN, in a statement on Friday, announced that Cardoso has formally assumed duty in an acting capacity pending his confirmation by the Senate. The statement noted that his assumption of office followed the resignation of Godwin Emefiele, who was suspended in June.

Experts who spoke to BusinessDay said they expect stability in the financial market following the appointments.

According to Uche Uwaleke, professor of finance and capital market at Nasarawa State University, Cardoso's assumption of office in an acting capacity was necessary, saying it would impact the confidence of players.