• Tuesday, May 21, 2024
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Naira weakens to one-month low of N1,300 as dollar liquidity drops

Dollar supply surge fails to lift naira

The naira weakened for a third straight day at the official market (NAFEM) on Tuesday, sliding to a one-month low of N1,300 per US dollar, according to data by FMDQ Securities Exchange.

Banking sources told BusinessDay that dollar liquidity has dipped on the back of investors exiting to safety in reaction to rising geo-political tensions that have also contributed to a stronger dollar.

Read also: Naira loses steam as stronger dollar spooks emerging markets

The naira also closed flat at the black market after an initial gain in the early hours of the day that was triggered by the CBN’s dollar sale to BDCs.

A dollar sold for N1,270/$ on the streets on Tuesday evening, unchanged from Monday, as multiple traders who spoke with BusinessDay lamented tight liquidity.