Naira Crashes Against Dollar

Naira Crashes Against Dollar

The naira on Friday closed at 370 to the United States dollar, as dollar supply from the Central Bank of Nigeria continued to decline.

The Nigerian currency, which used to stand between 360 and 365 to the greenback, has been trading between 367/dollar and 370/dollar in recent weeks.

The naira was estimated at 366.79 per dollar for investors, and traded at around 305.90/dollar on the official market space.

Reuters reported that money market rates had moderated on Thursday after the Federal Government expended N224.54bn ($715.10m) in budget distributions to the three tiers of government, boosting liquidity.

The Association of Bureau De Change Operators said the CBN needed to converge the exchange rate in order to stabilise the naira, as traders said the CBN repaid around N95.7bn in fully-fledged treasury bills to boost liquidity.

Afterwards, the central bank sold around N26.90bn at an open market treasury auction on Friday to soak up naira liquidity.






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