Naira sinks at I&E window as forex reserves shed $1.1bn

The Nigerian currency weakened further against the dollar at the investors’ and exporters’ window on Tuesday as the country’s foreign exchange reserves fell by $1.1bn in February.

The naira declined by 0.59 percent to close at 411.63 per dollar at the I&E, according to FMDQ Group. It closed at 410.25/$1 on Friday.

The country’s forex reserves fell to $35.09 billion as of Feb. 26 from $36.19 billion at the start of the month, the latest data from the Central Bank of Nigeria showed.

The CBN Governor, Mr Godwin Emefiele, said on Friday that the drop in crude oil earnings and the associated reduction in foreign portfolio inflows significantly affected the supply of foreign exchange into Nigeria.

“In order to adjust for the decrease in the supply of foreign exchange, the naira depreciated at the official window from N305/$ to N360/$ and now hovers around N410/$,” he said at a summit in Lagos.

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