Naira Falls To N1,675/$1 In Parallel Market As Reserves Deplete

The value of the naira continued to depreciate as the 30 days moving average of the external reserves also depleted.

This is as banks recommenced the sale of Business and Personal Travel Allowance (BTA/PTA) to customers.

At the close of business on Tuesday, the value of the naira at the parallel market declined by N10 selling at N1,675 to the dollar on the streets compared to N1,665 to the dollar which it sold on Monday.

At the Nigerian Foreign Exchange Market (NFEM), the value of the naira depreciated slightly from N1,551 to the dollar which it closed on Monday to N1,552 to the greenback. The Central Bank of Nigeria continued its interventions in the market with the external reserves further depleting.

Data from the CBN showed that year to date, the external reserves had depleted by $587.89 million dollars or 1.4 per cent from $40.883 billion which it was at the beginning of the year. Having risen to $40.92 billion on January 6, 2025, the reserves stood at $40.29 billion as at January 17, 2025.

Founder and chief executive of Nairametrics, Ugodre Obi-Chukwu, noted that the naira will continue to remain stable in the course of the year with the worst case scenario seeing the currency depreciate to N1,700 to the dollar and best case the naira rising to N1,400.

Meanwhile some banks have recommenced the sale to PTA/BTA to customers. In an announcement to its customers, First Bank of Nigeria said customers can now access foreign exchange for PTA, BTA, payment of school fees, medical bills, and other approved transactions under Form A.

The bank noted that to ensure a smooth application process, all Form A applications, including those for school fees, student upkeep, PTA, BTA, and medical bills, must be processed through the CBN’s Trade Monitoring System (TRMS) portal, with all required supporting documents uploaded.