• Sunday, December 10, 2023
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Naira weakens 40k against dollar on increased demand


The naira yesterday dropped against the US dollar by 40 kobo, closing at N158.32/$ as against N157.92/$ on Friday, data from the Financial Markets Dealers Association (FMDA) has revealed.

Olukunle Ezun, fixed in­come and currencies analyst, Ecobank Nigeria plc, told Busi­nessDay that the fall was due to increased demand for importa­tion settlements. He said the demand for the greenback is continually higher than supply. This, according to him, is due to the fact that the country con­sumes more than it produces.

Meanwhile, the local currency

yesterday remained stable at the bureau de change and parallel markets closing at N158.5000/$, and N159.0000/$, respectively.

However, the CBN yesterday offered and sold $180 million at its bi-weakly Wholesale Dutch Auction System (WDAS) to some successful deposit money banks (DMBs) at the rate of N155.75/$.

On the other hand, Cowry Research Market Insight shows that Nigerian Money Market Liquidity tightened at the inter-bank market as banks made withdrawals to participate at the bi-weekly sales of forex by Central Bank of Nigeria (CBN) as well purchase government instruments.