Market News
Naira Depreciates To N1,606.56/$1 On Official Market - NEW TELEGRAPH
The naira weakened on the official market on Wednesday, closing at N1,606.56/$1 compared to N1,594.27/$1 on Tuesday, data from FMDQ shows.
The local currency also fell against the dollar on the parallel market as it traded at N1,620 per dollar, compared to N1,610/$1 on Tuesday, currency dealers said.
Analysts attribute the naira’s weakness in the last few days to surging demand for dollars. New Telegraph reports that to address the sharp rise in demand for forex, the CBN had in recent weeks increased its interventions in the official market.
For instance, the apex bank announced last month that it sold foreign currencies worth $148 million in the Nigerian foreign exchange market (NFEM) to 29 authorised dealers on July 22 and 23.
On July 12, it sold foreign currencies worth $122.67 million to 46 authorised dealers in two days to ensure stability and reduce FX market volatility.
Between July 17 and July 18, the CBN said foreign currencies worth $106.5 million were sold to 29 authorised dealer banks.
On August 8, the regulator undertook a Retail Dutch Auction System (rDAS) during which it auctioned a total sum of $876.26 million at N1,495/$1 to 26 qualified banks, which participated in the auction.
