• Thursday, September 28, 2023
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Naira weakens as external reserves decline by $$31.16m

Naira reverses losses after CBN’s tweak to FX rule on remittances

Nigeria’s currency on Monday weakened by N1.00k as the dollar traded at N458 compared with N457 traded on Friday on the black market.

The foreign exchange market has been under pressure since March 2020 following a sharp drop in oil prices as a result of Covid-19 pandemic.

Naira remained stable as the dollar was sold for N457 at the Bureau De Change segment of the foreign exchange market.

The Central Bank of Nigeria (CBN) is expected to allocate some dollars to the BDC on Tuesday after funding their account on Monday.

At the Investors and Exporters (I&E) forex window, Naira depreciated by 0.04 percent as the dollar was quoted at N386.00 as against the last close of N385.83. Analysts at FSDH research said most participants maintained bids between N359.50 and N393.00 per dollar.

Last week, Nigeria’s FX reserves declined by $31.16 million week-on-week to $35.72 billion, as FX outflows outpaced inflows. Over the third quarter of 2020, total foreign inflows were $272 million, while outflows added to $1.94 billion, a report by FSDH stated.

The daily foreign exchange turnover declined by 24.09 percent to $102.35 million on Monday from $134.83 million recorded on Friday, data from FMDQ indicated.