Posted on: 04:51 Thu, 11 Feb 2016



As foreign exchange scarcity persists, the
nation’s currency, naira has depreciated further
to N315 against the dollar at the parallel
market.

The naira dropped further to N315 against the
United States dollar at the parallel market on
Wednesday as shortage of foreign exchange,
especially the greenback, persists in the forex
markets.

Traders who spoke to newsmen noted that the
naira was exchanged at N310 in the morning
but swings higher in afternoon and the fact that
it is not available.

However, the local currency had traded for 310
to a dollar on Monday, according, but closed on
Tuesday at 199.40 to the dollar on the
interbank market, around the peg rate of 197 to
the dollar.

This came just as the interbank lending rate
rose to two percent from one percent on
Monday, after the Central Bank of Nigeria
(CBN) had directed commercial banks to fund
their naira accounts ahead of its intervention in
the forex market on Thursday.

The overnight lending rates jumped by 100
basis points as the movement of naira cash for
forex purchases drained liquidity in the financial
market. The CBN intervenes once a week at
the interbank forex market to provide dollar
liquidity for some eligible importers.

The naira had plummeted against the dollar
last month after the CBN banned dollar sales to
Bureau De Change outlets and later stopped
daily sales to the interbank market.

The measures were aimed at conserving the
nation’s external reserves, which have hit an
11-year low at $28bn.

“The overnight rate went up today to three percent in the early trade but declined to two percent after some banks funded their forex
accounts,” forex dealer said.