FX Pressure As Naira Crashes Again Against US Dollar
- Naira dropped in the official market to N1,373.16 per dollar, compared to N1,361.39 against the previous day
- The local currency fell to N1,398 per dollar, selling in the parallel market, as the pound and the euro both suffered fresh losses
- Data shows External reserves decreased to below $48.4bn, due to a sharp fall in forex inflows
Legit.ng journalist Dave Ibemere has experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The naira has opened the week on a bearish note and declined against the dollar at the Nigerian Foreign Exchange market (NAFEM).
The local currency, as per the official market data, fell by 0.86% to N1,373.16 or N11.77 against the dollar from N1,361.39 the prior trading day.
Source: Getty Images
The naira, however, fell against major currencies in the official market during the trading day.
The Central Bank of Nigeria data revealed that the naira weakened against the pound sterling to N1,871.07 per dollar from N1,853.68, or by N17.39.
It, however, depreciated against the euro to N1,618.41 per dollar from N1,602.63 or by N15.78.
Naira depreciates in the black market
It was the same movement at the black market, as the currency also lost N5 against the dollar to N1,385 per dollar from N1,380.
At the GTBank forex counter, the currency weakened by N3 against the dollar from N1,372 to N1,375 per dollar.
A Bureau De Change trader, Abdullahi, told Legit.ng that the dollar was sold for N1,398 and bought for N1,388 against the dollar in the black market.
He added:
"The pound sterling was sold for N1,877 and bought for N1,862 against dollar while euro was sold at N1,619 per dollar and bought at N1,604 per dollar."
Source: Getty Images
Total inflows into the foreign exchange market decreased by 30.1% to $2.86 billion in April from $4.09 billion recorded in March due to interventions and external debt obligations from the CBN.
Nigeria lost $731 million in the first three weeks of April, while the value of foreign reserves fell by $731 million in the first three weeks of April.
Foreign inflows dropped by 21.9% to $1.63 billion, from $2.09 billion recorded in the previous month.
Snapshot of the value of the naira in the official market on Monday.
- CFA N2.44
- Yuan Renminbi N202.06
- AED Dirham N373.84
- Euro N1,618.41
- Danish Krona N216.55
- Yen N8.74
- Riyal N365.99
- South African Rand N83.87
- SDR N1,885.88
- Swiss Franc N1,765.90
- Pound Sterling N1,871.07
- US Dollar N1,373.16
Nigeria’s reserves hit $48.5 billion
Legit.ng earlier reported that Nigeria’s foreign exchange reserves have dropped to $48 billion, marking their highest level in nearly 13 years and signalling renewed strength in the country’s external position.
From $45.56 billion recorded on January 1, reserves have increased by $2.94 billion so far this year, representing a 6.45% gain.
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Source: Legit.ng
