The Nigerian Naira weakened against the dollar on Wednesday as the central bank continues to experience anxiety from reduced foreign exchange inflows amid falling oil production.
At the Investors and Exporters foreign exchange window, the Nigerian Naira shed N3.00 from N433.00 it opened on Tuesday, September 6, 2022, to N436.00 at the close of business.
The Spot rate and forward rate recorded a change as the Spot rate increased as high as N437.00 per dollar, while it also recorded a decrease in rate as low as N425.00 per dollar.
For the Forward rate, the Naira was traded at the increased rate of N452.67 per dollar, it also decreased to N436.00 per dollar.
According to the data available at the FMDQ managed forex window, currency traders at the Investors and Exporters foreign exchange window made a transaction of $63.05 million in trade on Tuesday.
The Nigerian Naira exchanged lower at the parallel market, popularly known as the black market, trading at N702 per dollar on Wednesday, amid the constant foreign exchange shortage and reduced revenue production.
At the Central Bank of Nigeria’s supervised foreign exchange section, the Nigerian Naira was exchanged at N426.11 to the United States dollar while it was exchanged at N492.924 against the British Pounds Sterling on Tuesday.
The Nigerian Naira traded at N422.6159 against the Euro currency.
In addition, Nigeria’s foreign reserve recorded a decline, from $39.024 billion recorded as of Wednesday 31st August 2022, to record $38.935 billion as of Monday, 5th September 2022.
The country’s foreign reserve has been on a downward spiral due to the constant intervention by the Central Bank of Nigeria in the official market to maintain the stability of the local currency.
As the Naira declines in value, inflation takes over the economy, which usually affects the citizens.
The central bank has declared that the Nigerian economy needs a substantial turnaround, such as focusing on the non-oil sector to boost the economy and also work towards improving exports.