Connect with us

Business

Naira begins new week at N520/$1, but expects recovery

Published

on

Nigeria’s currency is starting the new week weaker to the dollars, pounds and Euro at the unregulated exchange market, but hope of recovery is on the horizon.

According to Data from Abokifx, the Naira opening rate on Monday morning is at N520 to a Dollar, which is 0.98 percent weaker than the N515 it opened last week Monday.

Pressure from last week saw the Naira again opening this week weaker to the British pound and the Euro.

The British Pound Sterling opening rate will be N708/£1 while the Euro will be at N606/€1.

However, at the official market, the Investors and Exchange (I&E) window, the Naira will begin trading this week at the same rate from last week.

Read also: Naira falls against U.S dollar, Pounds, Euro as CBN tells Nigerians to show respect to Nigerian currency

According to FMDQ Securities Exchange data, this week’s starting rate is N411.67per $1, the same rate it opened last week Monday.

Meanwhile analysts are expecting the demand pressure that saw Naira drop in value by N5 at the black market to ease soon.

The expected Foreign currency inflows from Eurobond issuance of $6.2 billion and the $3.4 billion SDRs (Special Drawing Rights) from the International Monetary Fund (IMF) will have a significant boost on Nigeria’s external reserves.

However, data from the Central Bank of Nigeria revealed that Nigeria’s external reserves has dropped by 0.21 percent in one week.

According to CBN, the reserves fell from $33.584 billion on August 12 to $33.515 billion on August 19. This represents a $70.7 million depletion.

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

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

8 + fifteen =

TEST

Investigations