Naira suffers biggest drop in weeks

By Odunewu Segun

The Naira, at the weekend depreciated against the dollar in the parallel market and in the Investors and Exchange (I&E) window.

In a survey conducted by National Daily, the parallel market exchange rate rose to N369 per dollar last week from N365 per dollar the previous week. This translated to N4 depreciation for the naira, representing the Naira’s largest weekly depreciation of the in the parallel market in the last six weeks.

Similarly, data from FMDQ showed that the naira depreciated by N1.86 in the  I&E window last week as the indicative exchange rate rose to N360.36 last week from N358.5 per dollar the previous week.

Furthermore, the volume of dollars traded in the market dropped marginally to $703.14 million last week from $705.08 million the previous week.

In a statement released at the weekend by the Central Bank of Nigeria, the apex bank said it injected $250 million into the interbank market last week.

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Acting Director, Corporate Communications, CBN, Isaac Okorafor, said: “The wholesale sector was offered the sum of $100 million, just as the Small and Medium Enterprises (SMEs) window received a boost of $80 million. Those requiring foreign exchange to address needs such as Business/Personal Travel Allowances, school tuition, medicals, etc. were allotted the total sum of $70 million.”

Meanwhile, the nation’s external reserves have risen to $33 billion, the highest in 31 months

Okorafor disclosed this to journalists in Awka, Anambra State, during a seminar organized by the apex bank for finance correspondents and business editors.

He stated: “In confirmation of the assurance of the CBN Governor, Mr.  Godwin Emefiele that the economic situation will continue to improve, I want to inform you that the nation’s external reserve has today risen to $33 billion.”

National Daily investigation revealed that this represents the highest level of external reserves since January 2015, 31 months ago, when the reserve fell from to $32.36 billion from $34.24 billion in December 2014.

From January 2015, the external reserves declined steadily to $23.89 billion on October 19th 2016. Further analysis revealed that from October 19th 2016, the reserve commenced a bumpy but steady upward trend, rising by $9.11 billion or 38 per cent to $33 billion yesterday. Also the reserve has risen by $7.19 billion or 28 per cent since the beginning of 2017.