Naira Depreciates to N1640 as FX Crisis Deepens
The Nigerian naira exchange rate has crossed a new red line in the currency market. The exchange rate was quoted at #1640 against the US dollar at the official window.
The local currency has been under pressure even with huge FX sales to authorized dealer banks last month, as part of an effort to boost liquidity.
Key challenge for the naira is the amount of level of foreign currency in the supply side. For an import dependent nation, the demand patterns have appeared to remain strong.
The market expects the Central Bank of Nigeria to sell FX to authorize dealer banks this month following resumption of retail Dutch auction system.
Last auction details of $1.1 billion FX bids signifies expectations for the month at retail Dutch auction.
The Central Bank of Nigeria, according to some experts who discussed with MarketForces Africa, made fundamental mistakes with willing buyer and willing seller.
In the foreign exchange market, the Naira faltered, slipping by 083% against the US dollar at the official market, closing at ₦1,639.41 per dollar.
The pressure extended to the parallel market, where the Naira also weakened, dropping by 0.62% to settle at N1,625 per dollar.
In the goba commodity market, oil prices showed a positive trend, brent crude trading at $73.63per barrel and WTI at $70.15per barrel. #Naira Depreciates to N1640 as FX Crisis Deepens
