Naira Drops N2.89 Against Dollar at Official Market as CBN Holds Back
By Aboki Forex —
The Naira depreciated against the United States Dollar by 0.21 per cent or N2.89 in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Wednesday, June 17. It closed at N1,360.07/$1, down from Tuesday’s rate of N1,357.18/$1.
In the same session, the Naira weakened against the Pound Sterling by N4.42 to trade at N1,824.81/£1. It also lost N4.19 on the Euro to sell at N1,577.96/€1.
But at the GTBank window, the local currency gained N1 against the greenback to exchange at N1,372/$1. At the parallel market, the Naira held steady at N1,385/$1.
The Naira’s performance came amid tight inflows from exporters, non-bank corporates, and foreign investors. The country’s gross external reserves stood at $50.505 billion, showing slow movement despite muted oil sales after a recent drop in prices.
The Central Bank of Nigeria has reduced its FX market interventions. It is sticking to its stance of keeping the local unit stable enough to retain foreign investments.
Meanwhile, the Nigerian government dismissed a report that it was considering new taxes on telecom services and petroleum products. Officials said the report misrepresented recommendations from the International Monetary Fund (IMF) Article IV consultation.