The nation’s currency had hit had a record low of 330 per dollar at the regular interbank during trading on Friday, crashing to 9.5 per cent.
The crash came as traders tested lower levels seeking to attract liquidity in the absence of the Central Bank of Nigeria interventions.
On Thursday, the naira crossed 300 for the first time and hit 330.50 in off-market trades. Traders were expecting the CBN to intervene to ease dollar shortages, which did not materialise.
Traders said the apex bank did not intervene for most of last week. Instead it mopped up naira liquidity to support the currency. Parallel market rates jumped to 379 against the dollar on Friday evening while the pound went for N500.
“We are looking at what will be a comfortable rate for sellers to come back to the market,” one trader said, referring to foreign players. Most banks are quoting around 300 levels but liquidity is still thin. The central bank hasn’t participated this week.”
The CBN discarded its 16-month-old peg of N197 to the dollar last month. But the lack of liquidity has curbed activity, leaving the CBN as the main supplier of dollars.
