By Daniel Edu

In July 2023, Nigeria’s external reserves suffered a significant loss of $167.2 million, as reported by the Central Bank of Nigeria (CBN). The reserves, which stood at $34.12 billion at the end of June 2023, dropped to $33.95 billion by July 28, 2023, indicating the fall.

The black market exchange rate for the Dollar to Naira also witnessed fluctuations, with the buying rate reaching N871 and the selling rate hitting N875 on August 3rd, 2023, according to sources at Bureau De Change (BDC). It is essential to note that forex rates can vary, as the market remains dynamic.

The President of the Association of Bureau De Change Operators of Nigeria, Aminu Gwadabe, attributed the decline in external reserves to increased demand from oil marketers, investors’ backlog, and the need for foreign currency to cover school fees and travel expenses.

Despite the parallel market’s operation, the CBN does not recognize it and urges individuals to conduct forex transactions through their respective banks.

The depreciation of the Naira against the Dollar has been evident in the past weeks, as the Naira fell from 820/$ to 868/$ at the parallel market on August 3rd, 2023. These developments highlight the ongoing challenges faced by Nigeria’s economy in managing forex demands and maintaining stable external reserves.