• Tuesday, May 28, 2024
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BusinessDay

Naira eases on importers’ dollar demand

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Naira yesterday eased against the U.S. dollar on the interbank market as strong demand from importers of fuel and other goods drained liquidity in the market.

The local currency closed at 157.55 to a dollar, weaker than 157.30 it closed last Tuesday.

Forex traders said there was a surge in dollar demand on Wednesday from local importers against contraction supply, knocking the value of the naira lower.

At the official window, the Central Bank of Nigeria (CBN) auctioned $207.66 million at N155.74 to the U.S. dollar, compared with $290 million it sold at the same rate at Monday’s auction.

Dealers expect the local currency to trade within a N157.80-N158 range to the dollar this week unless fresh inflows from offshore funds participating at a local bond auction on Wednesday materialises to boost the naira.

The Debt Management Officer (DMO) plans to sell N110 billion ($700 million) in bonds ranging between 5-year and 20-year maturities at its fifth monthly debt auction of the year on Wednesday.