Naira Falls Against Dollar in Official, Parallel Markets, Reserve Rises

Naira Falls Against Dollar in Official, Parallel Markets, Reserve Rises

- The official market experienced a depreciated naira on Monday against the dollar. The same happened at the black market

- Forex turnover also dwindled on Monday when compared to what the market recorded last week Friday

- Nigeria's external reserve rose despite the depreciation of the naira and low forex turnover

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Naira's depreciation against the dollar continues as both currencies closed at N410.13 to one dollar on Monday, against Friday's N410/$1 at the official market, investors and exporters window.

This represents a N0.13kobo drop at the official market rate recognised by the Central Bank of Nigeria. However, during trading, naira hit a high of N412 to one dollar at the market.

It also recorded a low of N401 to a dollar, before settling at N410.13 kobo to one dollar. Also, the local currency became weaker in the parallel market during the same period.

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At the black market, the Nigerian note had depreciated to N486 to one dollar at the end of trading on Monday, slumping below the N485 to a dollar recorded on Friday. This represents N1 difference.

The depreciation extended into the forex turnover which dwindled to $25.88 million at yesterday's trading, from the $46.43 million recorded on Friday. The decline caused a gap of 44.3 percent.

Naira Falls Against Dollar In Official, Parallel Markets, Reserve Rises
Naira Falls Against Dollar In Official, Parallel Markets, Reserve Rises. Photo: KC Nwakalor/Bloomberg and Valera Golovniov/SOPA Images Light Rocket
Source: Getty Images

However, despite the dip in forex turnover, the country's external reserve rose to $34.46 billion on Friday.

PAY ATTENTION: Legit.ng is on a mission to support vulnerable children of Calabar – join the initiative

Meanwhile, Legit.ng had earlier reported that embattled former chairman of Skye Bank, Tunde Ayeni, and his business partner, Hosa Okunbo, are at loggerheads due to accusations of mismanagement of funds.

Ayeni had accused Okunbo of deceiving him in order to take over his company. He also claimed that his partner criminally diverted company funds as well. He wrote a petition to Police and EFCC, but the police have now been accused of taking sides.

Fakoyejo Olalekan is a Business and Financial Journalist with over three years of experience in covering finance and business activities within Nigeria and offshore. Prior to joining Legit.ng, he worked at Nairametrics where he wrote financial and investment analysis articles. Olalekan is a resourceful and result-driven journalist with a track record for conducting extensive research and interviews to produce articles that provide different perspectives to market activities.

Source: Legit.ng

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