Forex markets rates remain firm, as external reserves drop

The Naira to a US Dollar remained unchanged on the official and official market on Wednesday.

Naira closed N409.75 against the dollar at the Investors & Exporters (I&E) window of the foreign exchange market the same rate it closed on Tuesday according to data from the FMDQ Security Exchange where forex is officially traded showed.

However, market turnover rose by 359.45 per cent to $148.54 million on Wednesday as against the $32.33 million posted on Tuesday.

Traders who participated in the market bid for the dollar at a low of N390 and a high of N412, before closing at N409.75 on Wednesday.

Similarly, at the black market, Naira remained at N485 to a dollar the same rate at which it has closed since March 12 data from Aboki fx also showed.

Therefore, the difference between official and unofficial market remains at N75.25.

Read also: Naira depreciates across forex markets, as external reserves shed $838m in six weeks

Meanwhile, The Central Bank of Nigeria data has revealed that Nigeria’s external reserves have dropped by $522.5 million from March 1 to March 16, 2021.

Although, CBN has continued to allay fears over the depleting reserve, noting that the country has enough to finance 8.4 months of import of goods or 6.3 months of import of goods and services.

In February, $1.1 billion was withdrawn from the external reserves between February 1 and February 26.

The depleting reserves come on the back of the news that Nigeria increased its crude oil production to 1.42 million barrels per day in February.

The Organisation of the Petroleum Exporting through a direct communication was told that the country increased its oil production by 63,000 barrels in February.

However, OPEC noted that a secondary report said Nigeria oil production is actually 1.49 million bpd in February, up by 161,000 barrels from 1.33 million bpd in January.

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