The Naira has reacted sharply to the Central Bank of Nigeria’s extension of forex sales till May 30.
The Naira depreciated at the official market on Monday, trading at N1,495.60 to a dollar and further lost N13 on Tuesday.
Data from the FMDQ Security Exchange official forex trading platform revealed that the Naira lost N20.82 as at Monday.
This represents a 1.4 per cent loss when compared to the previous trading day on Friday, Jan. 31, when the local currency closed trading at N1,474.78 to a dollar.
Trading on the Investors and Exporters (I&E) Forex window on Monday recorded a high of N1,497.50 and a low of N1,470.00.
The Naira has enjoyed relative stability against the dollar since December 2024 due to sustained reforms by the Central Bank of Nigeria (CBN).
The apex bank’s reforms are also boosting capacity of BDCs who are in the retail end of the FX market.
The apex bank on Tuesday, Jan. 28, in Abuja, approved waivers on the 2025 annual license renewal fee for all existing BDC operators.
The bank also on Monday, Feb. 3 extended deadline for sales of dollars to BDCs from Jan. 31 until May 30.
Meanwhile, Nigeria’s foreign exchange reserves declined by $1.16 billion in January 2025, wiping out the $592.58 million gain recorded in December 2024.
The latest figures from the CBN show that reserves fell from $40.88 billion at the end of December to $39.72 billion as of January 31, 2025.
This marks the sharpest monthly decline since April 2024 and raises concerns about the country’s external liquidity position.
