• Hausa Edition
  • Podcast
  • Conferences
  • LeVogue Magazine
  • Business News
  • Print Advert Rates
  • Online Advert Rates
  • Contact Us
Tuesday, June 3, 2025
Leadership Newspapers
Read in Hausa
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
Leadership Newspapers
No Result
View All Result

Naira Value Dips As External Reserves Rises To $34.11bn

by Bukola Aro-Lambo
1 year ago
in Business
Naira is Nigeria's currency, Dollar is recognised world currency

Naira is Nigeria's currency, Dollar is recognised world currency

Share on WhatsAppShare on FacebookShare on XTelegram

The value of the naira dipped by 4.9 per cent last week closing at N1,627.40 to the dollar despite increased accretion of the country’s external reserves, LEADERSHIP learnt.
The external reserves increased by $347.53 million to $34.11billion as at March 7, 2024 from $33.016 billion it was on Jan 2, 2024.
Nigeria’s external reserves recorded 2.83 per cent year-to-date accretion following inflows from foreign capital and remittances.

Advertisement

The value of the naira at the Nigerian Autonomous Foreign Exchange Market (NAFEM) had dipped further, increasing the spread between it and the value of the Naira at the parallel market.
At the close of business on Friday, the Naira was selling at N1,600 to the dollar on the streets.
At the NAFEM, trades were consummated within the N1,400 and N1,652 to the dollar limit.
In the Forwards market, the Naira rates on the 1-month declined by 1.2 per cent to N1,600.35 to the dollar while the 3-month, 6-month and 1-year all declined by 2.5, 2.6 and 2.1 per cents to N1,664.04, N1,723.11 and N1,841.52 to the dollar respectively.

External reserves had seen a modest 3.64 per cent year to date accretion, standing at $34.11 billion as of March 7, 2024, as analysts described the rising reserves as an encouraging trend of improved foreign exchange inflow into Nigeria’s economy.
Analysts, whilst noting that the spread between the NAFEM and parallel rates had persisted for the second week within the N27.40 band, said they expect the naira to trade within a similar band across forex segments, supported by intensified regulatory spotlight.
Analysts at Cordros Research note that “notwithstanding the recent policy actions by the CBN, the currency has remained under pressure, given that the market supply remains frail. However, we are encouraged by the pace of market reforms and the apex bank’s renewed interventions.
“The CBN further reduced the forex backlog after providing a further $200 million during the prior week which reduces the backlog to circa $1.60 billion.

“In our view, as the CBN forges forward with its initiatives, which have included ensuring the naira assets are attractive to foreign participants (to drive capital importation), and domestic participants (to drive investments over speculation, and clears the forex backlog that dynamics in the forex market may improve and consequently lead to improved liquidity over the medium term.”
Cowry Assets analysts, in an emailed note, pointed out that Nigeria’s reserves, which has seen an uptick this year, had experienced a nearly two per cent dip since June 2023, following the foreign exchange unification exercise by the central bank.
“The decline in reserves since June 2023 can be attributed to various factors, including limited availability of foreign exchange liquidity due to low crude oil production, reduced export earnings, foreign exchange revaluation in 2023, and subsidy payments.

“Despite these challenges, the recent upward movement in reserves signals positive foreign exchange inflows into the economy. Notably, the CBN has reported a notable rise in total portfolio flows into the economy for 2024, currently standing at $2.4 billion compared to $3.9 billion in the entirety of 2023.
“Furthermore, within the first few days of March 2024, there has been a positive trend in total foreign exchange inflows driven by increased investor interest in short-term sovereign debt following adjustments to benchmark interest rates.

RELATED

Empowering First-Time Homebuyers Through Policy And Education

Empowering First-Time Homebuyers Through Policy And Education

5 hours ago
Chinedumuije Urges Tinubu To Stop Foreign Loans For Infrastructural Projects

Tech Expert Urges Business Owners To Use Data For Experiential Engagement

10 hours ago

“Additionally, overseas remittances surged to $1.3 billion in February 2024, surpassing the previous month’s inflow of $300 million by more than four times. Foreign investors actively participated in the Nigerian market, purchasing over $1 billion worth of local assets in February.

“This surge in foreign exchange inflow was attributed to substantial growth in remittance payments from Nigerians abroad and heightened interest from foreign portfolio investors in acquiring naira assets.
“In our view, we see the positive rise in Nigeria’s foreign exchange reserves levels as encouraging, despite the continued weakening of the naira in various foreign exchange segments.

“The future trajectory of reserve accretion will be contingent on several factors, including the oscillation of global oil prices, Nigeria’s efforts to tackle oil theft, and the effectiveness of forex management policies by the central bank in the medium to long term. These factors will play a critical role in determining the sustained growth of Nigeria’s foreign reserves and overall economic stability.”


We’ve got the edge. Get real-time reports, breaking scoops, and exclusive angles delivered straight to your phone. Don’t settle for stale news. Join LEADERSHIP NEWS on WhatsApp for 24/7 updates →

Join Our WhatsApp Channel

Breaking NEWS: Nigerians can now earn in US Dollars, acquire ultra premium domains for low and sell for super profit. Our client acquired a domain for $3715 and got it sold for $42,000. Click here to see how you too can profit from the business.


Tags: Naira
SendShareTweetShare
Previous Post

Borno Confirms Return Of 9 IDPs

Next Post

Troops Clear 50 IPOB Hideouts, Kill 20 Fighters

Bukola Aro-Lambo

Bukola Aro-Lambo

You May Like

Empowering First-Time Homebuyers Through Policy And Education
Business

Empowering First-Time Homebuyers Through Policy And Education

2025/06/02
Chinedumuije Urges Tinubu To Stop Foreign Loans For Infrastructural Projects
Business

Tech Expert Urges Business Owners To Use Data For Experiential Engagement

2025/06/02
Forum Salutes Tinubu, Umahi Over Infrastructural Development In North
Business

Amid 2,669 Road Construction Projects, Engineers Blame Kickbacks For Failures

2025/06/02
Large-cap Stock Drives Local Bourse To N180bn Gains
Business

Stock Investors Gain N3.967trn In May Amidst Positive Returns

2025/06/02
NCAT Rector Raises The Alarm Over Shortage Of Funds For Capital Projects
Business

‘Foreign Students’ Surge At NCAT Boosts Federal Gov’t’s Forex Earnings’

2025/06/02
IWD: Female Employees Share Career Journey At Schneider Electric
Business

‘AI Key To Optimising Infrastructure Surge For Nigeria Data Centres’

2025/06/02
Leadership Conference advertisement

LATEST

You Are Desperate For Self-serving Power, APC Chides Atiku, Amaechi, El-Rufai

Griezmann Signs Deal To Extend Stay At Atletico Madrid

My Support For Tinubu Not For Personal Gain – Kalu

Tinubu Celebrates NNPC Group CEO Ojulari At 60

Police Nab 6 Suspected Notorious Gang Members, Recover Arms In Lagos

Late Exams: Reps Gives WAEC 24 Hours To Submit Guidelines, Report

EFCC Re-arraigns Alleged Cybercrime, Terrorism Kingpin

Empowering First-Time Homebuyers Through Policy And Education

Eid-el-Kabir: Yobe Gov’t Shuts Schools For 10 Days

FRSC Begins Probe Of Kano Athletes’ Accident

© 2025 Leadership Media Group - All Rights Reserved.

No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us

© 2025 Leadership Media Group - All Rights Reserved.