Naira begins new week at N506/$1

Nigeria’s currency, the naira is beginning the new week at N506 to a Dollar, which 0.20 percent weaker than it did last week in the parallel market segment.

This is a N1.00 or 0.20 percent depreciation from the N505/$1 rate it has been trading at since July 9.

The Nigerian naira, on the other hand, remained stable against the British pound and the Euro, finishing last week at N708/£1 and N596/€1, respectively.

However, at the official market, the Investors and Exchange (I&E) window, the Naira will begin trading this week at N410.38/$1.

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According to FMDQ Securities Exchange data, this week’s starting rate is 0.33 percent higher than last week’s opening rate of N411.75 per $1.

Meanwhile data from Central Bank of Nigeria has revealed that Nigeria’s external reserves lost $180m in two weeks.

According to CBN data, the reserves fell from $33.28 billion on July 1 to $33.09 billion on July 12 before rising marginally to $33.1 billion on July 15.

Almost every week, the CBN allocates at least $210 million to the currency markets to assist demand while also guarding against the pressure that may lead to Naira depreciation.

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The CBN’s continuous intervention in the forex markets has put external reserves under strain.

Nigeria’s external reserves, which stood at $33.32 billion at the end of June 30, decreased by $905.5 million when compared to the $34.23 billion it stood at the end of May.

The reserve was at $34.88 billion as of April 30.