Naira sinks to fresh record low as CBN boosts liquidity – The Cable

The Nigerian naira sank to a fresh record low on Friday, as the Central Bank of Nigeria (CBN) attempts boosting liquidity through sales of dollars.

The naira fell as low as 295.25 to the greenback, at the interbank market on Friday, as the apex bank attempted solving the liquidity problems challenging the foreign exchange market.

The local currency closed at 2.7 percent lower than its opening price — trading at 290 to a single dollar. The parallel market also slid from 363 to 365 against the dollar on Friday evening.

Lukman Otunuga, FXTM research analyst, says the pressure on the naira, and the economy, is changing sentiment towards Nigeria, adding that the economic momentum of the country could punish the Nigerian stock exchange.

“Nigeria’s first quarter government revenues for Q1 reached a paltry 55% of what was targeted following the ongoing militancy in the south, which has seen oil production decline to painful levels,” Otunuga said.