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Naira Slips To Record Low Despite Growing Forex Reserves

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The value of the naira slipped by 1.68 per cent against the dollar at the official market on Thursday despite the growing foreign reserves.

At the Investor & Exporter foreign exchange window, the local currency opened at 413.15/$1 but closed at 422.07/$1.

The naira had depreciated by 0.19 per cent to 415.10/$1 on Wednesday after closing at 414.30/$1 on Tuesday.

At the parallel market, the dollar was bought at N565 and sold for N570, according to some operators in the black market.

The Central Bank of Nigeria, however, maintained N410.91/$1 as its official rate on its website.

However, Nigeria’s increased external reserves failed to provide respite to the already pressured local currency that had been devalued multiple times at the official market.

Since 2015, the naira has seen multiple devaluations at the official window despite the multi-tiered exchange rates in place to stem the local currency from free falling.

In spite of the central bank intervention in the foreign exchange market, the naira has not really fair well as the local currency continues to lose store of value.

Foreign investors have maintained distance with Nigeria due to their inability to get dollar returns out of the country as the banks are dealing with forex backlog.