Find out more as naira loses against dollar, pound, gains against euro

• The naira depreciated by 90 kobo against the US dollar at the official market at N1,332.09/$1
• The local currency weakened against the pound sterling but appreciated against the euro during the trading session
• Interbank foreign exchange turnover fell by 77.7% to $36.24 million as net foreign reserves rose to $46 billion

Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The naira weakened against the US dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Monday, October 12, as the official exchange rate moved to N1,332.09/$1 from N1,331.19/$1 recorded on Friday.

Data showed that the local currency lost 90 kobo, representing a 0.07% depreciation against the dollar during the trading session.

The naira also depreciated against the pound sterling, closing at N1,762.63/£1 compared with N1,759.16/£1 in the previous session, representing a decline of N3.47.

However, the currency strengthened against the euro, appreciating by N1.64 to close at N1,489.15/€1 from N1,490.79/€1 recorded on Friday.

At the GTBank foreign exchange desk, the naira gained N2 against the dollar to close at N1,338/$1, compared with N1,340/$1 previously.

The currency traded flat at the parallel market at N1,360/$1 during the session.

FX turnover drops sharply

Data published by the Central Bank of Nigeria (CBN) showed that interbank foreign exchange turnover fell by 77.7% to $36.242 million from $162.736 million recorded in the preceding session.

Despite the decline in turnover, Nigeria's net foreign reserves have reportedly risen to $46 billion amid increasing private capital inflows, strengthening the CBN's capacity to intervene in the market when necessary.

The reserves could provide additional support for the foreign exchange market as importers prepare for increased demand ahead of the December festive season.

Last week, dollar transactions climbed to $3.37 billion from $1.70 billion a week earlier, with spot transactions accounting for almost all the increase.

Analysts give outlook for naira

In its weekly economic and market report for the week ended October 9, Cordros Securities said the near-term outlook for foreign exchange inflows would depend on the resilience of foreign portfolio participation and a recovery in domestic sources of dollar supply.

The outlook suggests that sustained foreign investment inflows and improved dollar supply will remain important factors in determining the naira's performance in the coming weeks.

CBN exchange rates for other currencies

The CBN's published exchange rates for Monday, October 12, showed the following selling rates:

• CFA: N2.27
• Yuan/Renminbi: N199.03
• Danish krona: N199.19
• Euro: N1,489.15
• Yen: N8.40
• Riyal: N354.67
• South African rand: N80.58
• Special Drawing Rights (SDR): N1,802.73
• Swiss franc: N1,598.58
• Pound sterling: N1,762.63
• US dollar: N1,332.10
• West African Unit of Account (WAUA): N1,800.76
• UAE dirham: N362.65

IMF says Nigerians are suffering

Earlier, Legit.ng reported that the International Monetary Fund (IMF) has acknowledged that Nigerians are suffering from the rising cost of living, urging the federal government to introduce targeted cash transfers and temporary income support for vulnerable households.

The Fund said the measures would help reduce poverty and improve food security as rising food and energy prices continue to put pressure on household budgets.

Chief of the IMF Research Department’s World Economic Studies Division, Deniz Igan.

Source: Legit.ng