Naira to fall further on higher dollar demand

The naira is expected to depreciate further this week as rising dollar demand continues to put the local currency under pressure at the Central Bank of Nigeria’s interbank forex window and parallel market.

The local currency eased by four per cent against the dollar on Friday to hit a record low after the CBN sold the greenback at a weaker rate to boost interbank market liquidity, forex traders said.

The naira hit a record low of 295.25 on thin trade at the interbank market, a month after the CBN lifted its currency peg, Reuters reported.

A total volume of $12m traded on the interbank on Friday at an average rate of N290, with traders attributing the sale to a CBN intervention.

The interbank market had remained broadly stable at 282/283.

At the parallel market, the naira closed at 365 against the dollar on Friday. The local currency had closed at 352 per dollar the previous Friday.