Naira Slips Further to 1,515 Against Dollar Despite Rise in External Reserves

The downward spiral of the Naira continued on Monday, witnessing a further decline in the parallel market to 1,515 against the dollar, marking a 2.97 percent depreciation compared to Friday’s rate of N1,470.

This depreciation unfolded despite Nigeria’s external reserves edging up by 0.4 percent week-on-week, reaching a four-week high of $32.4 billion as of May 8, 2024, according to a report by BusinessDay.

In a bid to stabilize the retail segment of the forex market, the Central Bank of Nigeria (CBN) resumed dollar sales to Bureau De Change (BDC) operators in February. However, challenges persist as BDCs lament slow disbursement of dollars from the CBN, citing a delay of three to four weeks between payment and disbursement.

At the latest edition, the CBN offered to sell $10,000 per BDC, mandating them to sell at a maximum margin of 1.5 percent. Yet, some BDCs, grappling with the uncertainty in the forex market and delays in dollar disbursement, have reportedly requested the CBN to refund their Naira payments.