Naira falls against U.S dollar again, but CBN now has more firepower to defend

Naira fell slightly against the U.S. dollar at the official market on Monday, amid 22.89 percent decline in foreign exchange supply.

Data from FMDQ securities exchange window, also known as the Investor and Exporters (I&E) window where forex is officially traded showed naira closed at N413. 55 per $1.

Monday’s performance implies N0.17 or 0.04 percent depreciation from N413.38 it exchanged hands on Thursday, 30 September 2021.

Friday, October 1, 2021 was free trading day due to the independence celebration.

READ ALSO: Naira weakens to N478 on parallel market as dollar demand heightens pressure

At the return to the market yesterday, the value of transactions at the investors’ window went down by 22.89 per cent or $32.30 million to $108.83 million from the preceding session’s $141.13 million.

Similarly, at the interbank segment of the official FX market on Monday, data from the Central bank of Nigeria shows the Nigerian currency closed weaker against the American Dollar by 3 kobo or 0.01 percent to settle at N410.83/$1 compared with the N410.80/$1 it was sold at the preceding session.

Naira was also weaker to the British pounds at the interbank market closing at N558.89 on Monday from 552.73 it closed on Thursday last week.

Meanwhile, the rise in oil price, the successful Eurobond, and also the International Monetary fund (IMF) $3.5 billion SDR credit have helped boost Nigeria’s reserves to $36.4 billion as at Wednesday, September 29, 2021.

This is the biggest level Nigeria foreign reserve has been since Friday, 21, February 2020 when it stood at $36.6 billion.

In fact, it is expected the reserves will hit $40 billion when all the funds are received.

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