• Sunday, March 03, 2024
businessday logo

BusinessDay

Naira eases against dollar on increased demand

businessday-icon

The nation’s currency naira yesterday weakened against the US dollar losing 52 kobo at the interbank as it closed at N159.72/$ compared to N159.20/$, data from Financial Markets Dealer Quotations (FMDQ) have revealed.

Victor OFILI, research desk, Cowry Asset Management Limited attributed the naira depreciation to demand not being met by adequate supply.

He anticipates an appreciation of naira tomorrow as the Central Bank of Nigeria (CBN) will sell forex at its Retail Dutch Action System (RDAS) window.

According to him, once the funds enter the market, it will supplement the amount available in the alternative segments which include bureau de change and parallel market.

However the CBN on Monday offered $350 million but sold $349.8 million to 20 deposit money banks at the rate of N155.72/$ at its bi-weekly RDAS window.

Analysts had expected naira to firm up across market segments this week as the Central Bank of Nigeria (CBN) resumes forex sales at the official market, after two weeks of year-end closure.

Interbank rates at the money market yesterday, climbed slightly across tenor buckets by 1.92 percent from 11.43 percent the previous day to 11.65 percent.

Consequently, Nigerian Interbank Offered Rates (NIBOR) for 7 days tenor increased to 10.91 percent from 10.83 the previous day. In the same way, 30 days, 60 days and 90 days tenors climbed from 11.08, 11.33 and 11.70 percent the previous day to11.45, 11.70 and 11.95 percent respectively.

By: HOPE MOSES-ASHIKE