Despite the rise in crude oil prices this week, the sustained demand for dollars in the foreign exchange market means Nigeria’s currency ended the week 0.18 percent weaker.
Data from the FMDQ Security Exchange where forex is officially traded showed that Naira exchanged with the dollar at N411.0 compared to N409.20k it closed on Monday March 1, 2021.
Friday’s exchange rate also represents N4.5 or 1.10 per cent depreciation from N406.50 on Thursday March, 4.
In fact, on Friday, the Naira traded at a record high of N415/$.
On the unofficial market, data posted on abokiFX.com, showed the domestic currency remained unchanged at $480/1 through the week, but it is more likely to change next week.
Forex turnover at the Investor and Exporters (I&E) window however increased by 25.29 per cent, with $83.93 million recorded on Friday as against the $66.99 million posted on Thursday.
Ripples Nigeria check on CBN website reveals that Nigeria’s external reserves, which gives the Central Bank the muscle to defend the naira, has declined by $184.5 million to $34.91billion as at March 3, 2021, compared to $35.09 billion as at February 26, 2021 when Naira was devalued.
In the month of February 1st to 26th alone the depletion of the external reserves was by almost $1.1 billion
The drop in figure shows, CBN has been doing all it can to meet the increase demand for dollars by manufacturers and traders to keep them away from the parallel market and also stop speculative buying of foreign exchange.
CBN Governor Godwin Emefiele recently stressed the need to prevent the significant decline in external reserves through improving local production of imported items.
But he noted that the country has enough to finance the next seven months of importation and no need for panic.
Join the conversation
Support Ripples Nigeria, hold up solutions journalism
Balanced, fearless journalism driven by data comes at huge financial costs.
If you are motivated and passionate about building a global society, founded on justice, equity, fairness, transparency, accountability and superior knowledge, kindly consider donating to Ripples Nigeria’s solutions journalism.
Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.
INVESTIGATION: Inside UNILAG’s multi-million naira budgetary abuse and academic discord
The University of Lagos located in Nigeria’s commercial capital, Lagos, has been embroiled in controversies with allegations bothering on misappropriation of...
SPECIAL REPORT: Displaced residents of Zamfara battle hunger, as underfunding derails Nigeria’s nutrition goals
On paper, Muhammad Zayyanu is seven years old. The quiet boy who looks shorter for his age could not recollect...
INVESTIGATION: N7.3bn paid for unnamed projects; how Nigerian govt spent N2.2trn in six months
Analysing nearly 3,000 payments made by various Federal Government Ministries, Departments and Agencies (MDAs) over the previous six months (January...
INVESTIGATION… Delay rocks Nigerian govt’s promise of N30,000 covid-19 relief for artisans, others
Before the outbreak of the COVID-19 pandemic in February, 2020, Chukwudi Okoroigwe’s daily earnings as a bus driver was hardly enough to cater to the...
INVESTIGATION… Ten years after, communities count losses as AfDB, Cross River govt abandon road project
Ten years after the Cross River State government and African Development Bank (AFDB) jointly awarded the Yahe-Wanokom-Wanikade-Benue border road for...