The naira has opened the trading week on a bearish note, declining against the US dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM). Official market data shows the local currency fell by 0.86%, or N11.77, to N1,373.16 per dollar, down from N1,361.39 recorded in the previous trading session.
Naira Weakens Against Major Currencies
In the official market, the naira also depreciated against other major currencies. Data from the Central Bank of Nigeria (CBN) reveals that the currency weakened against the pound sterling by N17.39, moving from N1,853.68 to N1,871.07 per pound. Similarly, it fell against the euro by N15.78, from N1,602.63 to N1,618.41 per euro.
Black Market Dollar Rate Nears N1,400
The depreciation was mirrored in the parallel market, where the naira lost N5 against the dollar, trading at N1,385 per dollar compared to N1,380 previously. At the GTBank forex counter, the currency weakened by N3, moving from N1,372 to N1,375 per dollar.
A Bureau De Change trader, Abdullahi, told Legit.ng that the dollar was sold at N1,398 and bought at N1,388 in the black market. He added: "The pound sterling was sold for N1,877 and bought for N1,862, while the euro was sold at N1,619 and bought at N1,604 per dollar."
External Reserves Decline
Nigeria's foreign exchange reserves have fallen below $48.4 billion due to a sharp decline in forex inflows. Total inflows into the foreign exchange market decreased by 30.1% to $2.86 billion in April, down from $4.09 billion in March, attributed to CBN interventions and external debt obligations. The country lost $731 million in the first three weeks of April, with foreign inflows dropping by 21.9% to $1.63 billion from $2.09 billion in the previous month.
Official Exchange Rates on Monday
- CFA Franc: N2.44
- Yuan Renminbi: N202.06
- AED Dirham: N373.84
- Euro: N1,618.41
- Danish Krona: N216.55
- Yen: N8.74
- Riyal: N365.99
- South African Rand: N83.87
- SDR: N1,885.88
- Swiss Franc: N1,765.90
- Pound Sterling: N1,871.07
- US Dollar: N1,373.16
Nigeria's Reserves Hit $48.5 Billion
Legit.ng earlier reported that Nigeria's foreign exchange reserves had dropped to $48 billion, marking their highest level in nearly 13 years and signalling renewed strength in the country's external position. From $45.56 billion recorded on January 1, reserves have increased by $2.94 billion so far this year, representing a 6.45% gain.
