Naira Records All-Time Fall Against Dollar at Official Market As Foreign Reserves Drop by N151.9m in 22 Days
- Nigerian currency has dropped to its lowest level against the US dollar at the official market
- Naira depreciation comes amid rising demand for the dollar by exporters and holiday travelers
- Foreign reserves, which is used to satisfy demand, have also decreased, dropping N151.9 million in 22 days
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Naira, Nigeria’s legal tender on Friday, 23 December 2022, recorded an all-time depreciation against the dollar at the official market known as the Investors and Exporters (I&E) forex window.
This happened as more Nigerians, importers continue to demand dollars for their holiday travels, shopping, and business.
Legit.ng checks on the FMDQ securities portal where Naira is officially traded showed that after trading Naira closed at N456.50 to a dollar.
The closing rate is the lowest ever the naira has exchanged against the US dollar at the official market.
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Naira's poor performance happened as most foreign exchange market dealers who participated in the auction on Friday maintained bids at N440.00(low) and N452.00(high).
Black market exchange rates
While Naira Rates is reporting that at the parallel market on Friday, 23 December 2022, also known as the black market, the naira exchanged at N735.21 to a dollar.
Against the British Pound sterling naira is exchanged to the dollar at N901.347 While Euro is at N793.405.
CBN loses firepower to defend the currency
Meanwhile, the Central Bank of Nigeria has disclosed that Nigeria’s external reserves, which is the muscle to defend the naira in one week have declined in the first 22 days of December 2022.
According to CBN, the foreign reserves has dropped from $36.9 billion as at Thursday, December 2022.
This represents a N151.9 million or 3.0 percent decline when compared to the $37.1. billion that was in the reserves at the start of the month.
The reserves are a vital tool for the CBN in defending the naira since increased demand for dollars where there is a shortage means those having the currency (black market traders) will sell at a high price, thereby lowering the value of the naira.
Nigerian banks announce new working days, closing time
In another report, Nigerian banks have announced changes to their operating hours in order to assist Nigerians holding soon-to-expire Naira currencies.
The banks have already announced that they have delivered notifications of their working hours via their social media channels and customers' emails
Details of the contents of their emails and changes were captured by Legit.ng.
Source: Legit.ng
