Nigerian Naira depreciated further against US dollar to N1,563.80 in the official market.
Naira fall by 3.59% over the week despite foreign currency (FX) sales intervention by the central bank of Nigeria last week.
The Central Bank of Nigeria returned to the sales of US dollars to authorized dealers in the currency market.
This decision was once taken by the monetary authorities and it does not give any positive result on exchange rate.
About US$94.00 million at an average of N1,504 has been sold by the central bank to banks during the week.
At the Nigeria Authority Foreign Exchange Market (NAFEM) the total turnover increased by 14.3% to US$943.29 million on Thursday.
Analysts said “the CBN FX intervention was recommenced last week due to accretion into the nation’s external reserves, which peaked at a 13.-month high. Nigeria’s FX reserves expanded further last week as the gross reserves grew by US$507.09 million week on week to US$35.28 billion.”
“An investment firm reported that trades were consummated within the N1,465 – N1,590 band. In a note, Cordros Capital Limited said that although market liquidity improved on mild intervention from the CBN, it remained insufficient to drive a significant appreciation in the naira, as demand for FX continued to outweigh supply.”
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