Naira Gains at Official Market as Reserves Decline

The naira strengthened slightly against the dollar at Nigeria’s official foreign exchange market on Tuesday, November 3, while the parallel-market rate was reported unchanged and external reserves continued to edge lower, according to Central Bank of Nigeria data. The currency traded at N1,346.93 per dollar at the Nigerian Autonomous Foreign Exchange Market, improving by N1.01 from Monday’s N1,347.94. The Tuesday rate was also N0.67 stronger than Friday’s N1,346.26, following a N1.68 depreciation on Monday. In the parallel market, the dollar was quoted at N1,390 on Tuesday, unchanged from the previous session, according to the latest report. Earlier reports put Monday’s rate at N1,390 as well. One report gave a different Monday quotation of N1,378, so the available figures do not establish a single comparable rate for that session. The official exchange-rate movement coincided with a decline in foreign reserves. The Central Bank reported reserves of $55.16 billion as of November 2, down from $55.22 billion on October 30. Those figures followed a smaller decrease from $55.24 billion on October 29 to $55.22 billion the next day. The exchange-rate and reserve figures are based on...