The value of the Nigerian Naira weakened further on Wednesday, making two straight days of losses and a complete reversal of gains recorded early in the week at the official foreign exchange (FX) market.
Data from FMDQ securities where Naira is officially traded shows Naira value dropped to N419.33 a dollar compared to the closing rate of N418.50/$ on Wednesday.
Naira’s weak trading happened as forex supply shrunk to a low of $82.56 million as participants were forced to scramble for available dollars.
It was a different story for Naira against the British Pounds and Euro as it again appreciated.
However, CBN data shows that Naira continues to stay strong against the British pound as it extended its appreciation for three days.
Nigeria’s currency ended at N522.53/£1 on Thursday, up from N527/£1 on Wednesday, and it also rose against the Euro, closing at N439.3/€1 on Tuesday, up from N443.5/€1.
Meanwhile, the Central Bank of Nigeria (CBN) has recorded its first withdrawal from Nigeria’s external reserves for the month of March 2022.
For the first 21 days of March, the external reserve was on a consistent increase adding over $273.7 million.
However, this changed since Friday, 22 April, when CBN took a stance against IMF and World Bank that it would continue its intervention in Nigeria’s forex market.
The two global institutions had warned CBN to desist from its current policy of managing Nigeria’s exchange rate and allow market forces to determine the value of the Naira as it was adding too much pressure on the economy.
Godwin Emefiele, in his reply, insisted on a homegrown solution to managing Nigeria’s exchange rate and continuing with its intervention in the forex market despite IMF and World bank saying it was putting pressure on the Naira.
Since the response on Friday last week, a total of $134 million has been removed from the reserves, and it now stands at $39.67 billion compared to $39.81bn before the CBN response.
Join the conversation
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.
SPECIAL REPORT: Illegal miners degrade Ekiti community, engage in child labour
The activities of illegal miners in a community in Ekiti State have caused degradation of the environment, as miners engage...
SPECIAL REPORT: Inside the illegal trading of forest woods in Cross River community
“With a N20,000 bribe, an external buyer can influence the youth in host communities , Cross River State, to cut...
SPECIAL REPORT: Enugu govt watches as waste takes over state, threatens public health, environment
In this report, Arinze Chijioke looks at how delays in evacuation of waste in Enugu State encourages indiscriminate waste disposal, its health implications, and how...
INVESTIGATION: NDDC awards N1bn road contract to poultry farm
The Niger Delta Development Commission (NDDC) in what appears a breach of procurement laws, awarded a contract worth N1.028 billion...
FEATURE… Hard job, low income: Agony of Nigerian commercial drivers
Amid increase in fuel price over the years, coupled with bad roads and insecurity in Nigeria, many commercial drivers have...