The naira is expected to depreciate further this week as rising dollar demand continues to put the local currency under pressure at the Central Bank of Nigeria’s interbank forex window and parallel market.
The local currency
eased by four per cent against the dollar on Friday to hit a record low after
the CBN sold the greenback at a weaker rate to boost interbank market
liquidity, forex traders said.
The naira hit a record
low of 295.25 on thin trade at the interbank market, a month after the CBN
lifted its currency peg, Reuters reported.
A total volume of $12m
traded on the interbank on Friday at an average rate of N290, with traders
attributing the sale to a CBN intervention.
The interbank market
had remained broadly stable at 282/283.
At the parallel market,
the naira closed at 365 against the dollar on Friday. The local currency had
closed at 352 per dollar the previous Friday.
The naira experienced
volatility last week, as supply gap at the interbank forex market weighed on
the parallel market.
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