Naira Dives Low as Data Shows FX Inflows Fall by 62%
The naira dived low against the dominant foreign currency, US dollar due to tight forex supply. The naira lost ₦2.88 to close at N1,512.58 in the official market on Monday as US dollar demand overshadow total amount of foreign currency in the supply bucket.
The Central Bank of Nigeria (CBN) intervened in the forex market last week, selling $114.8 million between the rate of ₦1,497.00/$1 – ₦1,503.00/$1 on Friday, according to analysts’ notes. This brought to total foreign currency sales to authorised dealer banks for the week to $181.25 million.
The Nigerian autonomous FX window recorded an inflow of US$814.30 million, sharp decline of more than 62% from the US$2.15 billion recorded in the prior week, Coronation Research said in a note.
Analysts said the CBN accounted for 6.74% of the total inflow in the week. Other contributors include foreign portfolio investors (38.66%), non-bank corporates (26.01%), exporters (26.50%), while other sources accounted for (2.09%).
According to data from CBN, the foreign reserves continued its downward trend for the sixth consecutive week, shedding 0.91% or US$366.19 million to close at US$39.038 billion. #Naira Dives Low as Data Shows FX Inflows Fall by 62% Nigerian Exchange Falls by N73bn as Investors Dump VFD, OANDO
