Naira to dollars black market rate weakens

Naira to dollars black market rate weakens

Despite the rise in Nigeria’s foreign exchange reserves, on Monday, the naira to dollars black market rate dropped further.

A day after the Central Bank of Nigeria suspended the supply of foreign exchange to Bureaux de Change, the naira had risen to 506/$1 on August 4 after falling to 525/$1 at the parallel market on July 28.

The naira had on Thursday slumped to a new record low of N530 against the dollar amid the lingering scarcity of forex in the country.

However on Monday, the value of the naira further crashed to N532/$1 at the parallel market.

The local currency also fell against the British pound sterling to N723 at the parallel market from N722/£1 on Friday, while the euro rose to N625 from N622.

The forex reserves have risen to the highest level in more than three months, since falling to a record low of $33.09bn on July 12.

However, according to data from the FMDQ Group, at the I&E window on Monday, the naira gained 0.09 per cent to close at N411.13/$1.

Data from the Central Bank of Nigeria (CBN), showed that last Friday the external reserves, which have been rising consistently since August 25 hit its peak since May 26 at $34.26bn, following several weeks of fluctuations.

The CBN data showed the reserves gained $870m in the 10 days to September 3.

 

 

Author: Greg