The Central Bank of Nigeria’s (CBN) defense of Nigerian currency is having little impact as the Naira’s official market value continues to fall against the US dollar.
The CBN drew a total of $207.9 million from its external reserves in the first two weeks of February, but this did not help the Naira’s performance.
The Naira closed at N416.75 per dollar on Friday, 18 February 2021, down 8 kobo or 0.02 percent from the previous day’s close of N416.67/$1 in the Investors and Exporters (I&E) segment of the foreign currency (FX) market.
According to FMDQ securities data, the market value of the transaction dropped by 49.6 percent, or $62.99 million, to $64.03 million from $127.02 million.
It was a similar story against the Pound Sterling as the Naira depreciated by N2.46 to close at N567.14/£1 compared with N564.68/£1 it was transacted a day earlier
However, against the Euro, the local currency appreciated yesterday by N1.04 to settle at N473.08/€1 versus N474.12€1 of the preceding session CBN data shows.
At the Black market, the exchange rate remained at N574 on Monday morning, traders confirmed to Ripples Nigeria.