Trouble For Naira as External Reserves Plunges to $33.92 Billion as Naira Falls to N900 to a Dollar

• Nigeria’s external reserves fell to $33.92 billion after marginal recovery in early August
• The external reserves are used to defend the Nigerian currency, the naira, from further depreciation
• The naira fell to N774.8 to a dollar at the official window and N900 at the black market

Nigeria’s external reserves have fallen by 0.10% day-on-day after recovering slightly in the last week of July.

Information from the Central Bank of Nigeria shows that foreign reserves dropped to $33.929 billion as of August 4, 2023, from $33.965 billion recorded on August 2, 2023.

After slight recovery, the external reserves drops as naira plunges

Nigeria’s external reserves recovered slightly by 0.06% to $33.965 billion as of August 2, 2023, as against $33.944 billion recorded on July 25, 2023.

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CBN uses the external reserves as firepower to defend the naira from further depreciation.

The naira has plunged to N774.8 to the dollar at the official Investors and Exporters (I&E) window and N900 per dollar at the parallel or black market.

The external reserves maintained a steady fall of 8.47% year-to-date to $33.92 billion as of August 4, 2023, from $37.06 billion as of January 3, 2023.

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Nigeria’s external reserves are segregated into three distinctive portions: The CBN, the Federal Government, and the Federation, showing ownership.

The nation’s apex bank gets foreign inflows primarily from crude oil sales and other revenue sources on behalf of the Nigerian government.

The proceeds are shared monthly according to the constitution and the existing revenue-sharing formula.

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Naira plunges to N900/$, leaving Tinubu with more headaches as FAAN arrests Forex dealers in Lagos

Legit.ng reported that the Nigerian currency, the naira exchanged at the black foreign market for as low as N900 to a dollar on Monday, August 7, 2023.

According to street traders who spoke to Legit.ng, Nigerians looking to buy dollars should be ready to pay as high as N902 as of 3 pm on Monday

Also, Abokifx data shows that street traders are selling one dollar at N895 and buying at N888.

Source: Legit.ng