• Wednesday, April 24, 2024
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BusinessDay

MPC puts forex dealers on hold as naira eases against dollar

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Money market and foreign exchange dealers yesterday remained cautious, waiting for the outcome of the Monetary Policy Committee (MPC) meeting today, analysts have said.

In view of this, and coupled with corporate demand, the nation’s currency, naira weakened by 0.05 kobo against the US dollar at inter-bank market.

Naira yesterday closed at N158.70/$ as against N158.65/$, data from the Financial Markets Dealers Association (FMDA) has shown.

However, the CBN yesterday offered and sold $300 million at its bi-weekly Wholesale Dutch Auction System (WDAS) to 19 successful deposit money banks (DMBs) at the rate of N155.76/$.

The local currency yesterday remained stable at the official, bureau de change and parallel markets closing at N155.76/$, N158.5000/$, and N159.0000/$, respectively.

Analysts expect naira to improve tomorrow after the MPC meeting.

Liquidity squeeze yesterday continued at the inter-bank market as Nigerian Inter-Bank Offered Rates (NIBOR) took an upward trend across board.

 

HOPE MOSES-ASHIKE