Naira Falls To ₦368/Dollar

Central Bank of Nigeria, Abuja, FCT

The naira fell against the dollar at the interbank and parallel markets on Tuesday as inadequate foreign exchange liquidity at the interbank market continued to mount pressure on the naira.

The Punch report continues:

The naira has been falling steadily at the interbank market after the Central Bank of Nigeria floated the local currency completely on Friday.

At the interbank market, the currency fell from ₦292.9 on Monday to ₦294.5 on Tuesday as foreign portfolio investors shunned the market and liquidity problem continued to trouble it.

At the parallel market, the naira also fell from ₦365 on Monday to ₦368 on Tuesday.

The local currency, which had oscillated between ₦280 and ₦284 against the greenback at the interbank market since June 20 when the CBN floated it partially, started falling gradually on Friday following the complete floatation of the currency.

Foreign exchange dealers and experts said the interbank market had been witnessing little trading due to the fact that foreign portfolio investors were shunning the market.

They said the FPIs were not convinced that the interbank market was reflecting the true value of the naira.

They noted that few investors had returned to Nigeria’s markets since the last devaluation of the naira and many thought the exchange rate needed to weaken further.

The CBN Governor, Mr. Godwin Emefiele; and Deputy Governor, Sarah Alade, met investors in the United States and London last week to entice them to buy naira assets.