Naira slips further, closes in on N500 to a Dollar

The Naira is inching closer to N500 mark this week, as Nigeria’s currency fell by another N2 or 0.42 percent to close at N484 against the dollar on Tuesday at the parallel market, according to data from Aboki FX.

Naira had closed on Monday N482 against the dollar.

The Naira also depreciated further against the US Dollar to a record low at the Investors and Exporters window on Tuesday to close at N412 to a dollar. This represents a 12 kobo decline when compared to N411.88/$1 recorded on the previous trading day.

The opening indicative rate closed at N410.91 to a dollar on Monday. This represents a 73 kobo gain when compared to N411.64/$1 recorded on Monday.

Also, an exchange rate of N415 to a dollar was the highest rate during intra-day trading before it closed at N412/$1. It also sold for as low as N390/$1 during intra-day trading.

Forex turnover at the Investor and Exporters (I&E) window skyrocketed by 237.7% on Tuesday, 9th March 2021.

During the day trading FMDQ data shows Naira exchanged against the dollar to a high of N415 and low of N390 before closing at N412.

The difference between the unofficial and official exchange market after Tuesday’s trading now stands N72.

Meanwhile, the invest market witnessed a turnover of $110.01 million on Tuesday.

Tuesday’s trading marks the second day after the Central Bank of Nigeria began its naira for dollar promo, to encourage the use of official means to send money by Nigerians living outside the country.

Meanwhile, Nigeria’s external reserve continued its decline as it dropped by 0.29% on Monday, 8th March 2021 to stand at $34.74, being its highest daily decline in over 10 days.

The country’s external reserve declined from $34.84 billion recorded last week Friday to stand at $34.74 billion as of 8th March 2021.

It is worth noting that Nigeria’s external reserve has depleted to its lowest position in 10 months, which was as of 11th May 2020 when the reserve was at $34.66 billion.