In a move to revamp the Nigerian economy, the Central Bank of Nigeria (CBN) has officially floated the Naira and liberalised the foreign exchange market. As a result, Nigeria’s external reserves have taken a sharp decline, plummeting by $915 million.
Recent data released by the CBN on Sunday revealed that the country’s foreign reserves, which stood at $34.66 billion on June 14, 2023, at the time of the Naira float, had decreased to $33.74 billion as of August 24, 2023.
Prior to the Naira float, the value of the Naira against the US Dollar had closed at 471.67 Naira to 1 Dollar at the Investor & Exporter forex window on June 13. However, following the CBN’s announcement, the Naira experienced a significant depreciation, reaching over 700 Naira to the Dollar.
Presently, at the official window, the Naira is traded at 774.54 Naira to 1 US Dollar. In contrast, at the parallel market, the Naira ranges between 900 Naira to 918 Naira to the Dollar.
It is worth recalling that the CBN introduced the Naira float on June 14, which marked a significant turning point in Nigeria’s forex market.
