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    Naira value to Dollar plunges by 51.95% amid foreign reserves decline

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    Naija247newshttps://www.naija247news.com/
    Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

    The value of Nigeria’s naira to the dollar fell from 196.99 in December 2015 to 410 in April 2021, reflecting a 51.95 per cent decline despite the various foreign exchange policies introduced by the Central Bank of Nigeria to strengthen the currency.

    According to a monthly document obtained from the CBN’s website, the value of naira at the inter-bank forex market stood at N196.99 as of December 2015.

    The reserves fell by $222.3 million between May 31 and June 10 to $34.0 billion, according to figures published by the Central Bank of Nigeria. The last time it fell below that mark was between June and July of 2017.

    Data posted on abokiFX.com, a website that collates parallel market rates in Lagos showed, Naira closed at N505.00 at the black market, a N 3.00 or 0.60 per cent fall from N502.00 it traded since June 4.

    The naira also fell against the U.S. dollar at the official Investors and Exporters (I&E) window on Tuesday.

    The CBN, which operates a managed float, periodically supports the currency using the reserves, and a lower reserve is expected to affect the currency.

    Data posted on the FMDQ Security Exchange where forex is officially traded showed that the naira closed at N411.75 per $1 at the Nafex window

    The performance on Tuesday represents a N0.95 or 0.23 per cent decrease from N410.80 the rate it traded in the previous session on Friday last week.

    This happened as the day’s forex turnover increased by 85.64 per cent, with $172.24 million posted as against $92.78 million recorded in the previous session on Friday last week.

    It experienced an intraday low of N420.97 and a high of N400.00 before closing at N411.75 on Tuesday.

    The disparity between the black market and official market rates is pegged at N93.25, translating to a margin of 18.47 per cent as of the close of business on Tuesday.

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