Naira Crashes to N570 Per Dollar as External Reserve Reaches N16trn in Three Years

Naira Crashes to N570 Per Dollar as External Reserve Reaches N16trn in Three Years

  • Despite a modest performance, the Central Bank of Nigeria said the country's eternal reserve saw a decline in three years, closing at N16 trillion
  • This is so as the local currency, the Naira is experiencing a free fall at the parallel market and may close the year at N570 per dollar
  • The country experienced several declines but bounced back due to an increase in oil price, sales and marginal inflow of foreign direct investment

Nigeria’s apex bank, the Central Bank of Nigeria (CBN) said that Nigeria’s external account printed at N16.8 trillion as of December 23rd, 2021,

According to the CBN, a closer look suggests that the country is on its worst run in three years, a Nairametrics report says.

CBN governor, Godwin Emefiele
CBN governor, Godwin Emefiele
Source: Getty Images

Indications show that the external reserve may close at N16 trillion, an improvement from N14.4 trillion the country close at last year.

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The growth of the external reserve was attributed to the increase in oil prices, increased oil sales and higher external loans, and a marginal increase in foreign direct investment.

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Naira falls

Apart from this achievement, the exchange rate between the Naira and dollar fell flat in 2021, especially in the black market, and may close around N570 per dollar as Nigerians scramble for more dollar for imports and other transactions during the yuletide season.

Major declines

Nigeria experienced two major declines, 29th November when N250.8 billion and another N65.1 billion outflow on October 12, 2021.

The country experienced a major increase around September 30, October 8, and October 15 with N325,9 billion, N257.5 billion, N235.05 billion respectively.

E-naira bounces on reported that while the e-Naira is seeing massive and impressive downloads, the actual Naira is eroding in the official market.

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Can we just go back to using cowries? Basket expresses surprise all Naira notes together is less than $5

On Monday, December 6, the actual Naira closed at N415 at the official Investors and Exports window.

The eNaira has seen commendable adoption after it was launched in October this year. But experts are not sure if those downloading the app are using it or keeping it for future use or for fun.


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