As the Central Bank of Nigeria (CBN) struggles to sustain its float-management stance, the Naira depreciated by 0.17 per cent on Wednesday at the official Investors and Exporters (I & E) Window.
Trade report revealed that Naira declined to N463.67 per dollar as against its previous closure of N462.88 per dollar. Trade report obtained yesterday stated that naira declined to N463.67 per dollar as against its previous closure of N462.88 per dollar.
The majority of players at the official foreign exchange (forex) window kept their offers for one dollar between N460.00 and?466.00.
The decline in naira at the forex market comes as the apex bank strives to sustain its controlled rate at the official window, despite about 300 basis points disparity between the official rate and the parallel market rate.
The majority of private, independent, non-government customers obtain their foreign exchange from the parallel market, which is financed by private sources looking for better margins and round-tripping of cash from the official window.
This weekend, amid declining inflows and concerns over the nation’s currency management framework, Nigeria’s foreign exchange (forex) reserves hit a new low of $35.39 billion.
At the weekend, the country’s foreign exchange reserves had fallen by $111.10 million to $35.39 billion, marking the 11th week in a row that they had decreased.