Naira Falls to N1,373 as External Reserves Drop Below $48.4bn
By Aboki Forex —
The naira opened the week on a bearish note, declining against the dollar at the Nigerian Foreign Exchange market (NAFEM). Official market data shows the local currency fell by 0.86% to N1,373.16 per dollar from N1,361.39 on the previous trading day.
In the parallel market, the naira dropped further. Bureau De Change traders reported selling the dollar at N1,398 and buying at N1,388. At the GTBank forex counter, the currency weakened by N3 to N1,375 per dollar.
The naira also lost ground against major currencies. It fell against the pound sterling to N1,871.07 from N1,853.68, a drop of N17.39. Against the euro, it depreciated to N1,618.41 from N1,602.63, losing N15.78.
External reserves declined to below $48.4 billion, driven by a sharp fall in forex inflows. Total inflows into the foreign exchange market dropped by 30.1% to $2.86 billion in April from $4.09 billion in March. Nigeria lost $731 million in the first three weeks of April, according to Central Bank of Nigeria data.
Foreign inflows also fell by 21.9% to $1.63 billion, down from $2.09 billion recorded the previous month. Analysts attribute the decline to CBN interventions and external debt obligations.
Despite the current weakness, Nigeria’s foreign exchange reserves had earlier climbed to $48 billion, their highest level in nearly 13 years. From $45.56 billion recorded on January 1, reserves increased by $2.94 billion so far this year, representing a 6.45% gain.
Here is a snapshot of the naira’s value in the official market on Monday: CFA N2.44, Yuan Renminbi N202.06, AED Dirham N373.84, Euro N1,618.41, Danish Krona N216.55, Yen N8.74, Riyal N365.99, South African Rand N83.87, SDR N1,885.88, Swiss Franc N1,765.90, Pound Sterling N1,871.07, US Dollar N1,373.16.