• Thursday, May 23, 2024
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Naira weakens against dollar on oil price fall


  The naira on Thursday weakened for the fourth day against the US dollar, losing 39 kobo at inter-bank market to close at N158.80/$ against N158.41 the previous day, data from Financial Markets Dealers Association (FMDA) has revealed.

Analysts attributed the depreciation of the naira to increased demand for the greenback coupled with slumping oil prices and production.

Naira has continued to weaken in spite of the Central Bank of Nigeria’s (CBN) intervention of $600 million on Monday and Wednesday at its bi-weekly Wholesale Dutch Auction (WDAS) at N155.75/$.

The CBN on Wednesday offered $300 million but sold $266.18 million to 19 successful banks that participated at the bi-weekly WDAS.

The local currency 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.

According to Bloomberg, Qua Iboe and Bonny Light crude, the nation’s main export grades, both slid for a seventh day to their lowest levels since July 2012.