The Naira reversed its week-long sliding streak at the foreign exchange (FX) market on Monday, trading at N875 to the US dollar at the parallel market.
The local currency depreciated to the lowest exchange rate level on Saturday when it traded at N890 to the US dollar at the parallel market as scarcity of dollar and other foreign currencies worsened in the market.
According to data from the parallel exchange platform Aboki Forex, the Naira tumbled to a new low of N1005 against the British pound sterling on Saturday.
When contacted on phone, some forex traders at Wuse Zone 4 Abuja on Monday morning confirmed that the Nigeria’s currency marginally appreciated at the cryptocurrency peer-to-peer (P2) FX market, trading at a minimum of N861/$1 from N873.44/$1 that it traded on Friday.
At the NAFEX official window on Friday, the Naira closed against the US dollar at N445.5/$1, representing 0.06% appreciation from N445.75/$1 that it closed in the preceding day’s trading session.
But then, available l data on the Importer and Exporter (I&E) window on the day’s trading showed that the FX turnover dipped by 43.63% to $94.07 million on Friday compared to the $166.88 million that was traded the previous day.
Meanwhile, Nigeria’s external reserve marginally increased to $37.3658 billion last Friday, representing 0.001% growth over the $37.3656 billion it stood at the previous day.
Many financial experts have continued to attribute the low foreign reserve to the Central Bank of Nigeria’s (CBN’s) sustained interventions in the FX market to achieve some level of stability in the local currency’s exchange rate.
