The naira depreciated significantly at the black market on Thursday, falling by 2.37% to trade at N604/$1 compared to N590/$1 recorded in the previous trading session.
This is according to information obtained from BDCs operating in Nigeria.
Meanwhile, on Thursday the exchange rate between the naira and the US dollar closed at N420.33/$1 at the official Investors and Exporters (I&E) window.
Naira grew weaker on Thursday with a 0.26% depreciation to close at N420.33/$1 compared to N419.25/$1 recorded on Wednesday.
Recall that the exchange rate had recorded a 0.18% fall on Wednesday. The recent depreciation follows a crash in the amount of FX liquidity.
Notably, FX supply declined by 62.47% to $75.56 million on Thursday, 19th May 2022 from $201.34 million traded in the previous trading session.
Similarly, the exchange rate against the US dollar gained marginally by 0.17% on Friday morning at the peer-to-peer market, trading at a minimum of N604/$1 compared to N605/$1 recorded as of the same time the previous day.
Nigeria’s external reserve fell further on Wednesday, dropping by 0.11% to stand at $38.84 billion as against the $38.88 billion recorded the previous day. The last time Nigeria’s external reserve level was below $39 billion was seven months ago, 8th October 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.