Trading in the foreign exchange official market closed with the Dollar rate hitting N462.78/$1 on Monday, as the value of the Naira depreciated by –0.11 per cent.
Data from the FMDQ Exchange disclosed the Dollar rate was up by N0.55 kobo in contrast to the N462.23 kobo/$1 both currencies exchanged last week Friday.
Note that the foreign exchange rate had increased to a high of N466/$1 and a low of N446/$1 during trading on Monday, but it eventually closed at N462.78/$1.
On the same day, investors and exporters traded $99.33 million worth of foreign exchange before the close of business in the official market.
The value of foreign exchange transacted was 22.57 per cent or $28.96 million drop when compared to the $128.29 million liquidity traders exchanged the day before.
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In the official market, the Naira has come under pressure due to the scarcity of forex that has made the Dollar more valuable. In the first quarter of 2023, Nigeria’s foreign reserves dropped to $35.49 billion at the end of March, depreciating by 4.27 per cent or $1.58 billion from the $37.08 billion reported by the Central Bank of Nigeria (CBN) as of 30 December 2022.
The decline in foreign capital importation has contributed to the depletion of the foreign reserves, and in turn, has fueled the value of the foreign exchange in the official market, hence, the Naira’s weak state.