Nigeria’s currency (Naira) is starting the new week weaker to the dollars, pounds and Euro at the unregulated exchange market, but hope of recovery is on the horizon.
According to Data from Abokifx, the Naira opening rate on Monday morning is at N520 to a Dollar, which is 0.98 percent weaker than the N515 it opened last week Monday.
Pressure from last week saw the Naira again opening this week weaker to the British pound and the Euro.
The British Pound Sterling opening rate will be N708/£1 while the Euro will be at N606/€1.
However, at the official market, the Investors and Exchange (I&E) window, the Naira will begin trading this week at the same rate from last week.
According to FMDQ Securities Exchange data, this week’s starting rate is N411.67per $1, the same rate it opened last week Monday.
Meanwhile analysts are expecting the demand pressure that saw Naira drop in value by N5 at the black market to ease soon.
The expected Foreign currency inflows from Eurobond issuance of $6.2 billion and the $3.4 billion SDRs (Special Drawing Rights) from the International Monetary Fund (IMF) will have a significant boost on Nigeria’s external reserves.
However, data from the Central Bank of Nigeria revealed that Nigeria’s external reserves has dropped by 0.21 percent in one week.
According to CBN, the reserves fell from $33.584 billion on August 12 to $33.515 billion on August 19. This represents a $70.7 million depletion.