Naira falls against the dollar despite CBN’s forex interventions

The exchange rate between the naira and the dollar widened after the Nigerian currency lost again on the parallel market on Thursday, November 17, 2022.

The naira crashed to N800 per dollar on the parallel market on Thursday, ending one week of gains it witnessed after the Central Bank of Nigeria pulled $1.8 billion in reserves to defend it.

The local currency was on a rebounding spree last week, gaining over 25 per cent against the dollar.

The naira rebound rekindled hopes that the moves by the CBN to redesign the naira will keep it close to par with the US greenback.

But other reports say that towards the end of Thursday, November 17, 2022, it gained marginally against the dollar at the parallel market, exchanging for N790 per dollar. It represents 0.64 per cent of N796 per dollar it exchanged for on Wednesday, November 16, 2022.

The naira was exchanged for N446.67 per dollar at the Investors and Exporters (I&E) window, staying at the same threshold as the previous day.

Foreign exchange turnover at the official market went up by 1.79 per cent to $86.41 million on Wednesday compared to the $84.89 million it traded on Tuesday, November 16, 2022.

Nigeria’s external reserve dipped by 0.01 per cent to $37.17 billion as of November 15, 2022, from $37.18 billion recorded the previous day.

At the NAFEX window, the exchange rate stood at N446.67 per dollar, staying the same as the previous day.

The naira opened at the official market at N443.88 per dollar on Wednesday, November 16, 2022.

About $86.41 million in forex value was traded at the Investors and Exporters window on Wednesday, which is about 1.79 per cent higher than the $84.89 million on Tuesday.