Naira Tumbles Further To N352/$ As Demand Soars

The Nigerian currency dropped by 4.3 per cent from N282.75 and N352 per dollar which it sold at the interbank and parallel market, the value of the naira fell to N292.25 and N365 to the dollar respectively.

In non-deliverable forward markets, the one-month naira-dollar forward were quoted at N300. The one-year contract fell as low as N347 per dollar.

Last week Friday, a total of $12 million traded on the interbank market at an average rate of N290, with traders attributing the sale to intervention by the Central Bank of Nigeria in a bid to boost liquidity.

According to traders, the naira had weakened due to liquidity as other past suppliers of dollars, including oil firms, are now selling part of their hard currency directly to petrol importers under an arrangement with the government.

Denying reports that the apex bank interferes in the pricing of the naira at the interbank market, Emefiele said “prices are determined based on the market forces of demand and supply, and it is important to emphasize that CBN remains a player in that market.”