Naira heads for devaluation on bearish international oil prices

There is heightened apprehension over a likely devaluation of the naira as international crude oil prices remain bearish, hence an increase in speculative activities, Edgar Ebinum, analyst at Cowry Asset Management Limited, has said.

Naira yesterday depreciated against the US dollar losing 35 kobo to close at N159.00/$ as against N158.65/$ the previous day, data from Financial Markets Dealers Association have revealed.

He told BusinessDay in a text message that naira remained under pressure as Wednesday’s auction dried up in the system.

Ebinum attributed the naira depreciation to increased demand driven on one hand by importers and investments dividend repatriation. Again, the CBN seems to maintain a technical supply threshold hence it could not meet up with Wednesday’s surge.