CBN Intervenes as Naira Weakens to N355

The Nigerian Naira slid from N351 on Tuesday at the parallel market to N355 against the United States dollar.

While the local currency was traded at N282.50 to a dollar at the interbbank market, a little weaker than N282 recorded on Monday.

The Central Bank of Nigeria continues to sell dollar to prop up the Naira since it abandoned its 16 month-old fix rate last week. The apex bank reportedly sold an undisclosed amount on the interbank market on Tuesday to ease scarcity and made provisions for importers to pay for their products, traders were quoted by Reuters.

According to the traders, a total of $51m was traded in the interbank market yesterday, after central bank intervention.

On Monday, the apex bank introduced an over-the-counter futures market to help manage forex demand and allay fears. The Naira was quoted at 279 per dollar in a month’s time and 210 by April next year.

The Naira rose to N283 against the dollar at the non-deliverable market after hitting N296 last week.