• Friday, May 24, 2024
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BusinessDay

Naira weakens against dollar despite CBN’s $300m intervention

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 In spite of the Central Bank of Nigeria’s (CBN) intervention of $300 million, naira yesterday weakened against the US dollar, losing 21 kobo at inter-bank market.

Naira yesterday closed at N158.41/$ as against N158.20/$, data from Financial Markets Dealers Association (FMDA) revealed.

An analyst from Ecobank who spoke with BusinessDay said there is still increased demand for the greenback which has resulted in the depreciation of naira.

The CBN yesterday offered $300 million but sold $266.18 million to 19 successful banks that participated at the bi-weekly Wholesale Dutch Auction (WDAS) at N155.75/$. On Monday, it offered $300 million but sold $232.48 million to 17 successful banks that participated at the bi-weekly WDAS at N155.75/$.

The local currency yesterday remained stable at the official, bureau de change and parallel markets closing at N155.75/$, N160.0000/$, and N160.5000/$, respectively.

Analysts expect inflow from other sources of dollar supply to help strengthen naira days ahead.

The money market on the other hand was awash with liquidity yesterday as the Nigeria Inter-Bank Offered Rates (NIBOR) dropped across tenor buckets.

 

HOPE MOSES-ASHIKE