The Nigeria currency naira depreciated across all foreign currencies in the forex market, the worst hit since the Naira uncontrollable fall began.
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This happened as supply dropped at the Investors and Exporters (I&E) forex window, Nigeria’s official window. It fell against the dollar, Euro and Pound across Foreign Exchange markets (FX).
According to data obtained from the FMDQ, Dollar supply through the daily foreign exchange market turnover declined by 47.20 percent to $64.80 million on Thursday from $95.39 million recorded on Wednesday.
The drop in dollar supply consequently increased pressure and reversed Naira’s gains on Tuesday.
Data shows that at I&E forex window on Thursday, Naira fell to the dollar and quoted N441.83, which was higher than N440.67 quoted on Wednesday.
Data from the central bank of Nigeria (CBN) shows that Nigeria’s gross official reserves declined for the second consecutive month by around $772m to $38.2bn in September.
The decrease according to FBNQuest is the most significant since May, when gross official reserves dropped by almost $1.1bn. As such, some explanation is required.
“The CBN’s data series on FX flows through the economy is lagged. As a result, it will be a few more months before we get a clear picture of what caused the substantial m/m decline in official reserves. However, contributing to the overall reduction were coupon payments estimated at $145m on three of Nigeria’s sovereign Eurobonds – September,28, September, 33, and September, 51 issued last year,” the report stated.