The Naira, on Monday, June 27, fell to N282 against the dollar, weaker than N281 at which it closed the market on Friday, June 24, after the Central Bank of Nigeria sold foreign exchange to boost liquidity in the market.
The interbank market traded a total volume of $32 million just before the market closed which traders attributed to CBN’s intervention.
According to traders, the interbank market had not recorded any activity for up to three hours after it opened for trading at 8am.
“Liquidity is still relatively thin,” one trader said, adding that clients were waiting to see where the naira settles eventually before they start to participate in the market.
Currency traders on Monday said they had tightened the differential between bids and offers to 0.5 naira from one naira set when the currency was floated last week, to try to boost trading and attract liquidity.
Naira Slides To N282/Dollar As Interbank Rates Crash https://t.co/A8RTyXx2O2 https://t.co/p3BMtLd8cR
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