Naira weakens across forex markets after holiday
The financial markets resumed on Tuesday after the holiday marking the celebration of democracy with the nation’s currency depreciating in value against the U. S dollar across foreign exchange markets as external reserves declined to $30.49 billion.
Naira lost N1.11k at the investors and exporters window as it closed at N381.11k to the dollar on Tuesday from N380.00k per dollar quoted last week Friday according to data obtained from FMDQ.
The local currency weakened marginally at the inter-bank spot forex market by N0.05k to close at N305.40k as against N305.35k traded last week, data from FMDQ revealed.
At the black market, naira traded stable, closing at the rate of N378 per dollar in some areas of Lagos like Fesatc and Lagos International Airport, and N380 per dollar in Apapa.
The Central Bank of Nigeria (CBN) was said to have sold $100 million at a special wholesale spot and forwards auction to improve dollar liquidity in the foreign exchange market and curb pressure on the local currency.
The Apex Bank has been intervening on the official market to try to narrow the spread between the official interbank and black markets. It has sold around $4 billion since February, but analysts doubt that this pace can be sustained.
Nigeria’s foreign exchange reserves had dropped 0.87 percent to $30.49 billion by May 25 from a month ago.
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