Naira remains stable despite foreign reserve depletion

Despite the depletion of Nigeria’s foreign reserve, the county’s currency, naira remained stable at the parallel market on Monday.

Foreign exchange reserves which has seen a boost in 2017, due to the rise in crude oil prices, has been crashing for five consecutive days.

According to CBN figures available on Monday, the reserves stood at $30,911,121,646, falling from $30,988,403,724, only five days earlier.

Despite these fall, the naira has consistently traded around 386 to the greenback at the parallel market. The British pound and euro also traded at N495 and N420 respectively.

Speaking on the activities ahead for the Nigerian naira, Jameel Ahmad, FXTM vice-president of market research, said the local currency will be affected by OPEC decisions and GDP numbers later this week.

“It’s going to be a busy period for the Nigerian naira, with the OPEC meeting just two weeks away and important economic releases scheduled for next week,” Ahmad said.

“The latest inflation data is scheduled for release on Tuesday, where participants will be hoping that inflation readings have now reached the ‘higher level’ after the cost of living has increased in recent times following the prolonged depression in the naira.

“The main event however, will most probably be the GDP release scheduled for the end of the week.”