The Nigerian naira exchange rate has surpassed a fresh red line in the currency market. The official window quoted the exchange rate as $1640 versus the US dollar.
Despite massive FX sales to approved dealer banks last month in an effort to bolster liquidity, the local currency has remained under pressure.
The naira’s main difficulty is the amount of foreign currency in the supply side. For an import-dependent country, demand trends appear to have remained solid.
The market anticipates that the Central Bank of Nigeria would sell foreign exchange to approved dealer banks this month, following the reinstatement of the retail Dutch auction system.
Last auction details of $1.1 billion FX bids signifies expectations for the month at retail Dutch auction.
The Central Bank of Nigeria, according to some experts who discussed with MarketForces Africa, made fundamental mistakes with willing buyer and willing seller.
In the foreign exchange market, the Naira faltered, slipping by 083% against the US dollar at the official market, closing at ₦1,639.41 per dollar.
The pressure extended to the parallel market, where the Naira also weakened, dropping by 0.62% to settle at N1,625 per dollar.
In the goba commodity market, oil prices showed a positive trend, with Brent crude trading at $73.63 per barrel and WTI at $70.15 per barrel.
