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Efforts to unify the CBN and parallel market exchange rates, however, have contributed more to the constant depreciation of the Naira against other foreign currencies over the past six months.
To promote stability and transparency in foreign exchange operations, the exchange rates have been harmonised.
#DailyDataCard: Nigeria’s Foreign Trade in Q3 2022
Given the reality of the continuing pandemic, a decline in Nigeria’s total trade is not unexpected. But, a 27% drop in trade between the first and second quarters of 2020?
According to the World Bank’s 2020 Annual Ease of Doing Business Report, Nigeria ranks 179 out of 190 countries in the ease of trading across borders. Furthermore, the report reveals that it is easier to trade across borders in 39 sub-Saharan African countries compared to Nigeria.
The Federal Government of Nigeria has retained N360 to a dollar as the country’s official exchange rate. This was according to the 2021 – 2023 Medium Term Expenditure Framework and Fiscal Strategy Paper. The details were released by the Ministry of Finance, Ahmed Zainab, during a “Public Consultative Forum,” on Friday.
The Central Bank of Naira (CBN) recently devalued the naira by 5.54 percent. While the new rate has not been readjusted on the website of the apex bank, there are indications that exchange has been raised to ₦381/$1 in place of the previous official rate of ₦360/$1. However, the new rate has been updated on the website of FMDQ OTC Securities Exchange, a platform that oversees foreign-exchange trading.
Nigeria’s foreign reserve increased by 2.94 percent between 31st March and 30th June this year. This was revealed in the latest foreign reserves figures from the Central Bank of Nigeria (CBN). Whereas Nigeria’s gross reserve was valued at $35.16 billion at the end of Q1 2020, it increased to $36.2 billion at the end of Q2 2020. However, there were increases and declines within months and across the quarter. For example, the country’s foreign reserve declined by $373.23 million from $36.57 billion on June 1 to $36.2 billion on June 29.
Nigeria has one of the most competitive markets in Africa. With an estimated population of over 200 million people and a population growth rate of 2.6 percent per annum, Nigeria has the seventh-largest population in the world. The country also sits atop 70 percent of the effective West African market and it is the most competitive destination for the establishment of medium and large manufacturing industries.
