Naira Gains As Nigeria’s Foreign Reserve Plunges Below $39 Billion

Naira has gained as Nigeria’s Foreign Reserve plunged below $39 Billion.

Newsonline reports that the exchange rate between the naira and the US dollar closed at N418.5/$1 at the official Investors and Exporters (I&E) window, appreciating by 0.71% from N421.5/$1 recorded the previous day.

Naira gained against the US dollar on Tuesday, following the record-high depreciation recorded in the previous trading session. Likewise, FX turnover improved by 48.7% to $105.1 million in contrast to $70.68 million that exchanged hands on Monday.

On the flip side, the exchange rate against the US dollar depreciated by 0.5% on Wednesday morning at the peer-to-peer market, trading at a minimum of N603/$1 compared to N600/$1 recorded as of the same time the previous day.

Meanwhile, the exchange rate at the parallel market remained stable at N590 to a dollar. This is according to information obtained from BDCs operating in Nigeria.

Nigeria’s external reserve however fell below the $39 billion thresholds on Monday as the level recorded a 0.24% decline to stand at $38.92 billion from $39.01 billion recorded as of the previous day. The last time Nigeria’s external reserve level was below $39 billion was seven months ago, 8th Oc tober 2021 specifically.

The decline in the external reserve level can be attributed to the continuous intervention by the Central Bank in the FX market in order to ensure the stability of the local currency.

Trading at the official NAFEX window

Naira gained 71 basis points against the US dollar on Tuesday, to close at N418.5 to a dollar.

Trading at the official NAFEX window

Naira gained 71 basis points against the US dollar on Tuesday, to close at N418.5 to a dollar.

The second most capitalized crypto asset, Ethereum also followed suit with a 2.31% decline as of press time on Wednesday to trade at $2,040.65. Solana also lost 2.61% to trade at $55.5175.

LUNAUSD recorded a 0.68% downturn to trade at $0.00018506, while Uniswap having recorded a 3.84% dip, trades at $5.26.