Nigeria’s naira weakened marginally against the U.S. dollar at the Investors & Exporters (I&E) window of the foreign exchange market on Wednesday, data from the FMDQ Security Exchange where forex is officially traded showed.
Even as Nigeria’s foreign reserves fell by $1.2 billion between January 25 and February 22.
The reserves rose to $36.5 billion on January 25th and fell to $35.3 billion on February 22nd when it was last updated
Oil revenue constitutes about 60 per cent of government’s revenue and 90 per cent of Nigeria’s source of foreign exchange earnings, even though it accounts for just 9 per cent of the nation’s GDP.
However, the currency remained stable at the parallel market.
Naira closed at N408.80 at the Wednesday trading session of the I&E window, this represents a N0.2 or 0.05 per cent depreciation from N408.60, the rate at which it closed at the previous session on Tuesday.
The local unit touched an intraday high of N390.00 and a low of N429.75, before settling at N408.80 on Wednesday.
This occurred as turnover increased by 72.2 per cent, with$212.43 million recorded as against the $123.37 million posted on Tuesday.
On the unofficial market, data from abokiFX.com, a website that collates parallel market rates in Lagos showed the domestic currency remained unchanged from the rate it traded on since the beginning of the week.
According to the data posted, naira again, exchanged with the green back at N480.00, the same rate it traded in the previous session on Tuesday.
By this, the spread between the unofficial market and the I&E window exchange rates is pegged at N71.20 , which translates to a gap of 14.83 per cent.
The CBN’s official rate on Wednesday was still N379 per dollar.