Market News
Naira Depreciates To N1,611.34/$1 On Official Market - NEW TELEGRAPH
The naira weakened on the official market on Tuesday, closing at N1,611.34/$1 compared to N1,585.77/$1 on Monday, data from FMDQ shows.
The local currency also fell against the greenback on the parallel market yesterday, as it traded at N1,640 per dollar, compared to N1,635/$1 on Monday, according to currency dealers, who attributed the naira’s depreciation to dollar shortage.
In recent weeks, Bureaux De Change (BDCs) operators have complained of not receiving adequate forex supply from the Central Bank of Nigeria (CBN).
However, the last two months saw the apex bank stepping up its interventions in the official market to ensure stability and reduce FX market volatility. For instance, on July 12, the apex bank sold foreign currencies worth $122.67 million to 46 authorised dealers.
Also, between July 17 and July 18, it sold foreign currencies worth $106.5 million to 29 authorised dealer banks. While on July 22 and 23, it sold foreign currencies worth $148 million in the Nigerian foreign exchange market (NFEM) to 29 authorised dealers.
On August 7, 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.
