Economic pressure on Nigeria’s foreign reserves means Nigeria’s Naira has depreciated further at the parallel market.
On Monday, the naira devalued further to N250 from earlier N248 to the dollar at the black market, reports Premium Times.
The foreign exchange formal rate at CBN is still fixed at N198 to the dollar.
The Central Bank of Nigeria says the depreciation comes as a result of economic pressure on the country’s foreign reserve.
Some experts say that the weakening of the reserve was due to the increase in domestic demand for foreign exchange, spill-over from the JP Morgan effect and the phased exclusion of Nigeria from its Government Bond Index-Emerging Markets, GBI-EM indices of local currency government bonds.
The present status of the nation’s foreign reserve from the CBN shows that the formal foreign reserves reduced by 276 million dollars in November to 29.9 billion dollars on a 30-day moving average basis.
Earlier in October, the reserve fell by 150 million dollars.
While the official naira rate has been fixed at N198 for about 11 months, Ahmed showed optimism that naira will rebound between Wednesday and Thursday, when CBN sells fresh foreign currencies.
However, Godwin Emefiele, CBN Governor, says the nation saves about 100 million dollars weekly since the introduction of the Bank Verification Number.
Meanwhile, Emiefiele three weeks back revealed that the external reserves of Nigeria rose to $31.89 billion as of July 7, 2015.
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