The Naira recorded a marginal depreciation against the Dollar in the foreign exchange market for the first time since March 2024 amid the decline of FX reserves.

FMDQ data showed that the Naira dropped after months of stability to N1,148.14 per Dollar on Tuesday from N1,136.04 on Monday.

This represents N12 or 1 per cent depreciation compared to the N1,136.04 recorded on Monday.

Similarly, the parallel market depreciated to N1,100 per Dollar in the parallel market, from N1,050 per Dollar on Monday.

The Naira recorded a N50 depreciation against the Dollar in the black market.

The last time the Naira recorded a loss at the foreign exchange market was on March 9, when it dropped to N1627.40 per Dollar.
However, the Naira had recorded a steady appreciation for months amid the Central Bank of Nigeria’s efforts to defend the currency.

To this end, the Naira became the best-performing currency in April, according to Goldman Sachs.

On two occasions in recent months, CBN had sold USD to the Bureau De Change operators at a benchmarked rate, closing the gap between the official and parallel market rates.

Meanwhile, the country’s FX reserves had been depleted to $32.29 billion on April 15, 2024, from $34.45 billion on March 18.

The development comes amid declined crude oil revenue in March.

Nigeria’s crude oil production dropped to 1.23 barrels per day in March from 1.32 bpd in February.

Meanwhile, the Nigerian government had vowed to ramp up production to boost revenue in the coming months.

Lordsonn:
Foreign reserve is going down deeply. We all know why naira is depreciating now.
The next move is for the government to borrow billions of dollars to defend naira. This method cannot sustain for long. CBN has given out 2 billion dollars in less than two months to banks and BDCs to defend naira. This is sad.

garykoeman:


Official rate is higher than parallel market.

Can u explain how naira is being defended.

greenermodels:
All these confusion and pains would have been avoided if Tinubu had not prematurely floated the naira without thinking of the consequences, now they're wasting billions of dollars to defend the same naira from falling to its true value. A case of acting before thinking.

Donaldoni:
Piiiggs rest!
It will hover around 1,100 for sometime until a new development begins to take full effect - local production of petroleum products.
Then it will appreciate considerably again.

Donaldoni:
Piiiggs rest!
It will hover around 1,100 for sometime until a new development begins to take full effect - local production of petroleum products.
Then it will appreciate considerably again.

greenermodels:
didn't you read where it said that the cbn is selling to dollars to bureau de changes at indexed prices? I guess you don't even know that bureau de changes are the parallel markets and indexed prices means the prices are fixed artificially by the cbn.

CodeTemplar:
That's what happens when you ignore the foundation of economics - production - and focus on adjusting variables in a bid to spark reaction that can boost indices.

garykoeman:

Official rate is higher than parallel market.
Can u explain how naira is being defended.

keymatt:
Using external reserves to defend the naira is the most useless policy ever carried out by a regime. Why float the Naira only to go back defending it only to deplete external reserves in the process You think investors will invest in an economy without a robust dollar reserve Keep celebrating audio growth. This policy will backfire before your very eyes.
Your agbadorian regime are full blown INCOMPETENT THIEVES.

greenermodels:
didn't you read where it said that the cbn is selling dollars to bureau de changes at indexed prices? I guess you don't even know that bureau de changes are the parallel markets and indexed prices means the prices are fixed artificially by the cbn.

keymatt:
Using external reserves to defend the naira is the most useless policy ever carried out by a regime. Why float the Naira only to go back defending it only to deplete external reserves in the process You think investors will invest in an economy without a robust dollar 💵 reserve Keep celebrating audio growth. This policy will backfire before your very eyes.
Your agbadorian regime are full blown INCOMPETENT THIEVES.

SpecialAdviser:
My problem in all these is that the prices of goods are not coming down. Agbadorians will be disturbing us with nye nye nye. yan yan yan

What a BAND F government. Worst in the history of Nigeria. Chai

PressMyButton:

This happened at parallel market not official market. I thought the CBN is defending the naira, then why did it fall at the parralel market after defending it?

keymatt:
Using external reserves to defend the naira is the most useless policy ever carried out by a regime. Why float the Naira only to go back defending it only to deplete external reserves in the process You think investors will invest in an economy without a robust dollar 💵 reserve Keep celebrating audio growth. This policy will backfire before your very eyes.
Your agbadorian regime are full blown INCOMPETENT THIEVES.

CodeTemplar:
production puts the forex in the hands of the parallel market drivers. The SMEs and individuals.

tollyboy5:

The reason why price of goods are not coming down is because you're buying from bitter Obi sellers.
Buy goods from normal Nigerians, you sef go bodija and buy your bag of rice.

PressMyButton:

What is the name of your lecturer?

SpecialAdviser:

Sense is very far from you. Pele

CodeTemplar:
commonsense should tell your thick upper capivty that a farmer who sells grain to a merchant from Ghana or Niger has attracted forex into the country and can demand to be paid with forex.
Rice n beans

greenermodels:
All these confusion and pains would have been avoided if Tinubu had not prematurely floated the naira without thinking of the consequences, now they're wasting billions of dollars to defend the same naira from falling to its true value. A case of acting before thinking.

PressMyButton:

Oh!, farmers and SMEs are the ones you're calling "parallel market drivers" whatever that means, Lol.
Listen, you don't need to force yourself to say what you don't know, sometimes, it is honourable to just read and move on.