Naira loses gains, drops against dollar, other major currencies

The Naira has lost all its gains of two weeks against the US dollar and other major currencies on Wednesday, exchanging for N465 to a dollar at the parallel market as against N465 it exchanged for on Monday.

While the official exchange rate by the CBN is still pegged at N379 to a dollar, the naira lost 1.09 per cent to exchange for N465.

It is not just the dollar that gained against the Nigerian naira on Wednesday.

The Euro also went up by 0.93 percent to exchange for N540, while the pound sterling also appreciated 0.83 per cent to sell for N595.

The falling Naira is clearly connected with the nation’s forex reserve, as it has not recorded any appreciable surge since August.

With oil prices now falling below $40 a barrel, forex inflow will only come in trickles.

The country’s forex reserve has been stuck at the $35 billion range since August, causing a scarcity that will impact on the parallel market.

The Naira traded at N440 at the beginning of September.