- The Nigerian currency, the naira is on a downward spiral as it continues to lose against major currencies
- At the official Investors and Exporters window on Tuesday, May 10, the naira firmed up slightly against the US dollar
- However, the naira lost its nerves at the parallel market, otherwise known as the black market, exchanging for N602 per dollar
There seems to be no end in sight for the Nigerian currency, the naira as it continues to slide on a daily basis.
At the official Investors and Exporters window, the naira closed at N418.25 per dollar on Tuesday, May 10, 2022, which is a marginal recovery in comparison to N419 it exchanged for the previous day.
Also, forex liquidity jumped significantly by 341.3 per cent to $234.54 million from $53.15 million traded on Monday.
Naira loses on the black market two days in a row
However, the naira fell flat against the US dollar on Wednesday morning on the black market, exchanging at a minimum of N602 per dollar as compared to the N600 per dollar it recorded the same time the day before.
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The country’s external reserve depreciated further by 0.36 per cent on Monday, May 9, 2022, to stand at $39.17 billion in comparison to $39.31 billion recorded the day before.
The slump in the external reserve level is due to the ongoing intervention by the Central Bank of Nigeria in the forex market so as to ensure the stability of the naira.
Crypto investors see reasons to smile as market makes slight recovery
Meanwhile, on Tuesday, the crypto market recorded a 2.61 per cent gain to stand at $1.397 trillion, as it saw massive sell-offs in the past week due to a steady slump in price caused by the growing strength of the US dollar.
Bitcoin has rebounded by 2.36 per cent to trade at $30,79,000 on Tuesday, May 11, 2022, while a 1.7 per cent decline was recorded in the early hours of Wednesday as it dropped to $30.47,000.
In the same vein, Ether went down by 0.81 per cent to exchange at #2.320.16 on Wednesday, May 11, 2022.
External reserves drops by $190 million in eight days as CBN launches Forex initiative
Legit.ng has reported that Nigeria’s external reserves have fallen slightly by $196 in eight days by April 28, data obtained from the Central Bank of Nigeria says.
The Punch reports that the CBN stated that the reserves, which gained $243.83 million within 19 days from $39,54 billion on April 1, 2022, increased to $39.78 billion as of April 19 days from $39.78 billion on April 19, 2022, nosedived.
It fell by $313 million in March after beginning the month at $39.86 billion before falling again to $39.55 billion on March 30.