Tuesday 27 August 2013

Naira weakens against dollar despite CBN’s intervention of $180m

Despite efforts by the Central Bank of Nigeria (CBN) to stabilise the foreign exchange, the nation’s currency, the naira, yesterday, weakened the third day against the US dollar, losing 39 kobo at inter-bank market. 

Naira on Monday and Tuesday weakened against the US dollar losing 40 kobo and 24 kobo, respectively, at inter-bank market. Data from Financial Markets Dealers Association indicated that naira closed at N158.95/$ as against N158.56/$ on Tuesday.

The CBN yesterday offered and sold $180 million at its bi-weekly Wholesale Dutch Auction System (WDAS) to 18 successful deposit money banks (DMBs) at the rate of N155.75/$. On Monday, it also offered the same amount to 20 banks at the same WDAS and at the same rate.

Analyst who spoke with BusinessDay attributed the depreciation of the naira to increasing demand by importers. “It was the dynamics between supply and demand”, the analyst said.

Meanwhile, the local currency yesterday remained stable at the bureau de change and parallel markets closing at N158.5000/$, and N159.0000/$, respectively.

Culled from BusinessDay

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