• Thursday, May 30, 2024
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BusinessDay

Naira falls N1.70k against dollar on back of oil price drop

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The naira on Thursday depreciated significantly against the US dollar by N1.70k or 1.04 percent at the inter-bank market following continuous drop in the price of crude oil.

The price of crude oil (Bonny Light) on Thursday dropped by 2.2 percent to $93.08/barrel compared to $95.2/barrel on September 24, 2014.

After trading on Thursday, the local currency closed at N164.10/$ as against N162.40/$ on Tuesday, according to data obtained from Financial Markets Dealers Quotations (FMDQ).

Analysts say declining global oil prices and low offshore inflows into the local debt and equity markets have seen the naira weaken in the last three weeks.

However, there was no dollar sale by Central Bank of Nigeria (CBN) at the Retail Dutch Auction System (RDAS) on Wednesday due to the public holiday marking Nigeria’s 54th Independence Day celebration.

Meanwhile, the CBN on Monday offered a total of $500 million but sold a total of $499.9 to 20 deposit money banks at the rate of N155.75/$ at its twice weekly Dutch Auction System (RDAS).