CBN faces tough choices as Naira depreciation continues at official market

The Central Bank of Nigeria (CBN) defense of Nigerian currency is making little impact as the value of the Naira continues falling against the US dollar at the official market.

In the first two weeks of February, CBN had withdrawn from the external reserves a total of $207.9 million but this has failed to help Naira performance.

On Friday, 18 February 2021, the Naira ended at N416.75 per dollar, down 8 kobo or 0.02 percent from the previous day’s close of N416.67/$1 at the Investors and Exporters (I&E) segment of the foreign currency (FX) market.

Data from FMDQ securities showed the value of the transaction at the market, dropped by 49.6 per cent or $62.99 million to $64.03 million from the $127.02 million achieved at the previous session.

READ ALSO: Currency in circulation hits all time high, as CBN pushes N418bn into economy

It was a similar story against the Pound Sterling as the Naira depreciated by N2.46 to close at N567.14/£1 compared with N564.68/£1 it was transacted a day earlier

However, against the Euro, the local currency appreciated yesterday by N1.04 to settle at N473.08/€1 versus N474.12€1 of the preceding session CBN data shows.

At the Black market, the exchange rate remained at N574 on Monday morning, traders confirmed to Ripples Nigeria.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now