The Naira has lost all its gains of two weeks ago against the US dollar and other major currencies and has sunk to the status quo ante, exchanging for N465.
The exchange rate on Monday was N460 to a dollar.
However, the Nigerian currency lost more grounds on Wednesday, losing 1.09% to sell at ₦465.
The official exchange rate by the CBN is still pegged at N379.
“US Dollar was traded at ₦440 at the beginning of September on Tuesday, September 01, 2020. With USD being traded at ₦465 now, we see a %5.68 rise for USD to Naira exchange rates for this September”, noted ngnrates.com, a website affiliated to Western Union.
It is not just the dollar that gained against the Nigerian naira on Wednesday.
The Euro also went up by 0.93 percent to exchange for N540, while the pound sterling also appreciated 0.83% to sell for N595.
The falling Naira is clearly connected with the nation’s forex reserve, as it has not recorded any appreciable surge since August.
With oil prices now falling below $40 a barrel, forex inflow will only come in trickles.
The country’s forex reserve has been stuck at the $35 billion range since August, causing a scarcity that will impact on the parallel market.
On 3 August, Nigeria had $35.76billion in reserve.
As at 14 September, Nigeria had $35.79 billion in reserve, indicating little movement.