Naira eases against dollar despite CBN’s $299.9m intervention

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160912F_Naira-notesNigeria’s currency, the naira Monday weakened against the US dollar losing N0.44 kobo at the interbank market.

The naira Monday closed at N159.04/$ compared to N158.60/$ on Friday last week, data from the Financial Markets Dealers Quotations (FMDQ) have revealed.

This is in spite of the intervention by the Central Bank of Nigeria (CBN) at the Retail Dutch Auction (RDAS) window.

Analysts attributed the naira depreciation to increased demand for the greenback by the end users.

The CBN Monday offered $300 million but sold $299.9 million to 19 deposit money banks at its bi-weekly RDAS at N55.71/$.

The result of Monday’s trading somehow contradicts analysts anticipation that the naira may this week stabilise against the dollar given the banking regulator’s defensive posture as well as expected inflows from foreign investors bidding for local fixed income instruments.

 

[Business Day]

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