Naira Falls Against The Dollar Despite CBN’s Forex Interventions
- The naira has continued on its downward spiral against the dollar after it showed some signs of strength recently
- It exchanged for N800 per dollar on Thursday and later appreciated marginally at N790 towards the end of the trading day
- The external reserve dipped further to 37.17 billion as of November 15, 2022, from $37.18 billion recorded the previous day.
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The exchange rate between the naira and the dollar widened after the Nigerian currency lost again on the parallel market on Thursday, November 17, 2022.
The naira crashed to N800 per dollar on the parallel market on Thursday, ending one week of gains it witnessed after the Central Bank of Nigeria pulled $1.8 billion in reserves to defend it.
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Naira flounders despite initial gains
The local currency was on a rebounding spree last week, gaining over 25 per cent against the dollar.
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The naira rebound rekindled hopes that the moves by the CBN to redesign the naira will keep it close to par with the US greenback.
But other reports say that towards the end of Thursday, November 17, 2022, it gained marginally against the dollar at the parallel market, exchanging for N790 per dollar. It represents 0.64 per cent of N796 per dollar it exchanged for on Wednesday, November 16, 2022.
The naira was exchanged for N446.67 per dollar at the Investors and Exporters (I&E) window, staying at the same threshold as the previous day.
Foreign exchange turnover at the official market went up by 1.79 per cent to $86.41 million on Wednesday compared to the $84.89 million it traded on Tuesday, November 16, 2022.
External reserves plunges
Nigeria’s external reserve dipped by 0.01 per cent to $37.17 billion as of November 15, 2022, from $37.18 billion recorded the previous day.
At the NAFEX window, the exchange rate stood at N446.67 per dollar, staying the same as the previous day.
The naira opened at the official market at N443.88 per dollar on Wednesday, November 16, 2022.
About $86.41 million in forex value was traded at the Investors and Exporters window on Wednesday, which is about 1.79 per cent higher than the $84.89 million on Tuesday.
How naira will exchange for N200 per dollar after redesign, says EFCC Chairman
Legit.ng reported that the Chairman of the Economic and Financial Crimes Commission (EFCC), Abdulrasheed Bawa has said the naira will exchange for N200 to a dollar when the Central Bank of Nigeria (CBN) is done redesigning the local currency.
As per TheCable, Bawa disclosed this in an interview with the Hausa service of Deutsche Welle, the German broadcaster on Wednesday, November 16, 2022.
The EFCC boss applauded President Muhammadu Buhari for giving his consent for the naira redesign.
Source: Legit.ng
