The naira’s value dropped against the US dollar at the foreign exchange market following increased demand for forex at the official window.

Central Bank of Nigeria’s (CBN) data shows that the FX rate was quoted at N1,530.25 per dollar.

The naira depreciates, reserves rise

Further data shows that the transaction rate hit an intraday high of N1,533 and a low of N1,527 per dollar before closing at N1,531.

The forex rate depreciated as foreign exchange reserves rose, hitting $37.638 billion at the beginning of the week.

Accretion into Nigeria’s reserves has been caused by higher crude oil output recently and a slowdown in CBN’s FX interventions.

Crude oil output rises above OPEC quota

A prior report by Legit.ng disclosed that Nigeria recorded a crude oil production increase, which exceeded the quota assigned by the Organisation of Petroleum Exporting Countries (OPEC), the first time in seven months.

Data from the Nigerian Upstream Petroleum Regulatory Commission (NMDPRA) shows that Nigeria’s daily crude oil output rose by 3.6% to 1.51 million barrels per day, from 1.45 million barrels per day in May.

Reports say Nigeria's crude oil volume plateaued at 1.54 million barrels per day in January. When added to condensates, Nigeria’s daily crude outputs stood at 1.69 million barrels per day, relative to 1.65 million barrels per day in May.

CBN eases forex intervention sales

Market Forces Africa reported that the CBN appears to have eased forex sales to authorised dealers through intervention sales in the second half of the year.

According to the report, in the first part of the year, CBN defended the naira with $4.7 billion as it stepped in to shield the naira due to foreign investors’ exit.

Capital outflow has also thinned sharply, but the risk remains, analysts say. The yield on treasury bills, both FGN bonds and OMO auction, has continued to decline, which could force some foreign portfolio investors (FP1s) to exit if the trend continues.