The Naira lost momentum in its exchange rate struggle against the US dollar at the black market in the early hours of Wednesday, trading at N705/$1, representing a depreciation of 0.67% compared to N745/$1 it traded the same period the previous day.
Some FX traders in the parallel market linked the slide in the local currency’s exchange rate partly to current policy initiatives by the Central Bank of Nigeria (CBN) aimed at withdrawing old Naira notes from circulation amid scarcity of the newly redesigned banknotes.
Also, the local currency dropped in value at the cryptocurrency (P-2-P) exchange to trade at a minimum of N747.30/$1, or 0.09% slide against N746.6/$1 it traded on the exchange in the previous trading session.
However, at the investors and exporters (I&E) window, the Naira appreciated by 0.14% to close at N461.5/$1 on Tuesday, from N462.17/$1 it exchanged on Monday.
Data from the CBN indicated that the FX turnover decreased by 39.08% on Tuesday to $74.58 million from $122.43 million that exchanged hands during the preceding day’s trading.
The data also reflected that the Naira opening indicative rate at N461.5/$1 on Tuesday while it exchanged at N462/$1 as the highest rate during intra-day trading session before it settled at N461.5/1. The local currency traded for as low as N4i6/$1 during intra-day trading.
This is even as the apex bank reported that Nigeria’s external reserves level decreased by 0.09% last Friday to $36.988 billion from $37.02 billion that accrued to the reserves the previous day.
