Reserves stable at $26 billion, naira falls further – Guardian

dollar to naira

The foreign exchange reserves have lost $2.97 billion since this year from combined challenges of low earnings and interventions in defense of the local currency.

However, it has recorded a relative stability at $26 billion market since May 2016, more than at other months of the year, with marginal gains and losses, as a result of policy options, improved earnings and demand pressure on the other hand.

Starting from January, the reserves lost $810 million from $28.97 billion; $340 million to $27.82 in February; and gained $40 million in March.

In April, it resumed the sliding profile, losing $780 million; $700 million in May, to $26.38 billion; $20 million in June; and $160 million in July.

From June to date, reserves’ depletion has moderated due to the introduction of the flexible exchange rate policy, which reduced speculations and volume of spot dollar-purchase, through the foreign exchange forwards market.

Similarly the, the local currency sustained its loss at the parallel market, exchanging for N400 per dollar at the weekend.

On the official interbank market, the naira ended weaker at N318.91 per dollar, after trades worth $12.63 million.

The naira dropped continuously at unofficial market last week after opening at 381 on Monday, riding on the back of assessed dollar demand from individuals travelling abroad for their summer holidays.