Naira begins new week at N506/$1

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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.

READ ALSOAgain, naira plummets further against dollar

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.

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