Naira weakens further despite boost in Dollar liquidity

Nigeria’s local currency, the Naira has further weakened against the Dollar at the parallel market, exchanging at N505 for a Dollar as against the previous N502.

Also the naira value dropped against the Pounds Sterling and Euro, to N716 and N608 to each of them, from N715 and N607 respectively.

The fall in Naira also occurred against the US dollar at the Investors and Exporters window on Tuesday.

Data posted on FMDQ website shows the exchange rate between naira and the US dollar closed at N411.75/$1. This represents a 95kobo decline compared to N410.8/$1 recorded on Friday, last week.

On Tuesday, however, FOREX turnover surged by 85.6 percent to $172.24 million.

Meanwhile, data from the Central Bank of Nigeria shows Nigeria’s foreign reserves have plunged to $33.96 billion.

The last time foreign exchange reserves were lower than they are now was on May 4, 2020, at $33.89 billion.

The opening indicative rate closed at N411.46 to a dollar on Tuesday, 15th June 2021 representing a 90 kobo decline when compared to the N410.56/$1 recorded on Friday, 11th June 2021.

Also, an exchange rate of N420.97 to a dollar was the highest rate recorded during intra-day trading, before it settled at N411.75/$1. It also sold for as low as N400/$1 during intra-day trading, the same as recorded in over a week.

Forex turnover at the Investors and Exporters (I&E) window increased by 85.6% on Tuesday, 15th June 2021.

Data tracked from FMDQ showed that forex turnover increased from $92.78 million recorded on Friday, 11th June 2021 to $172.24 million on Tuesday, 15th June 2021.