According to data from the Central Bank of Nigeria, the country’s external reserves declined by $167.2 million in July, causing the naira to further depreciate against the dollar.

The reserves, which stood at $34.12 billion on June 30, 2023, dropped to $33.95 billion as of July 28, 2023.

In the past two weeks, the naira’s value at the parallel market fell from 820/$ to 868/$. Similarly, at the Investors and Exporters (I&E) window on the FMDQ, the naira started trading at 784.91/$ and reached a peak of 830/$ before closing at 756/$.

Currency traders in Lagos reported buying and selling the dollar at rates between 860/$ and 868/$ on Monday.

The President of the Association of Bureau De Change Operators of Nigeria expressed concern about the increasing lack of confidence in the local currency and rising foreign exchange demand, which is putting pressure on the limited availability of dollars in the market.

He urged the government to seek additional foreign finance to boost liquidity.

The Central Bank of Nigeria’s acting governor, Folashodun Shonubi, assured that the bank would address the demand pressure on the naira, and interventions would continue until stability is achieved in the foreign exchange market.