The Nigeria currency has depreciated slightly against the US dollar on Wednesday as naira was exchanged at N386.33 to a US dollar on the I&E Fx window following an increase in value from N389.99 it traded in the morning.
On the parallel market, the Naira traded at N445 to a US dollar on Wednesday, the same amount it traded on Tuesday.
Against the British Pound, the local currency was exchanged at N540 per Pound and N470 against the Euro single currency.
Despite improved oil prices and surged in the foreign reserves by over $3 billion in the month of May,the currency was exchanged at N386.33 to a US dollar on the I&E Fx window following an increase in value from N389.99 it traded in the morning.
The volume traded declined by 28.3 percent from $31.40 million on Monday to $24.64 million Tuesday.
Nigeria Foreign Reserves
The foreign reserves rose by $3.073 billion from $33.520 in April to $36.594 billion in May, according to the data released by the Central Bank of Nigeria. The reserves had plunged from $38 billion in January 2020 due to the weak global demand for crude oil and low oil prices.
Gkobal demand for oil prices dropped by over 30 million barrels per day in April during the peak of COVID-19 lockdown. With refineries shut, oil-dependent nations like Nigeria were unable to sell crude oil or generate revenue despite their economic challenges.