SAT, AUGUST 12 2023-theGBJournal |Nigeria’s FX reserves remained under pressure this week, as the gross reserve decreased by USD44.41 million w/w to USD33.88 billion (10 August).
Nigeria is grappling with the challenge of reduction in foreign exchange earnings, primarily stemming from a decline in crude oil revenues.
This dearth of foreign investments has further compounded the difficulties faced by the current government in bolstering its economic situation.
Meanwhile, the naira appreciated by 0.3% to N740.60/USD at the I&E window (IEW).
At the IEW, total turnover (as of 10 August 2023) decreased by 50.3% WTD to USD226.00 million, with trades consummated within the N700.00 – N800.00/USD band.
In the Forwards market, the naira rates on the 1-month (-2.6% to NGN794.67/USD), 3-month (-3.5% to N813.25/USD), 6-month (-3.7% to N838.28/USD) and 1-year (-4.3% to N898.09/USD) contracts all declined.
July 2023 commenced with the Naira valued at N741.50 against the US Dollar, reflecting the longstanding economic challenges Nigeria has faced.
However, as the month unfolded, the Naira’s value encountered a significant setback, recording a decline of 2.08% to reach N756.94/$1 on the Investors and Exporters (I&E) window by month-end.
The downward spiral was exacerbated by an unprecedented intra-day peak of N869/$1, marking the worst recorded value in history.
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