Naira Weakens To 362 Per Dollar As CBN Injects $210 Million Into Forex Market
Nigeria’s currency, the naira weakened to 362 to the dollar on Tuesday as demand for the green back by foreign investors seeking to take their profit home increased over the last few weeks.
Recall that the naira traded at 360 for over six months after the Central Bank of Nigeriam CBN in April 2017 liberalised the currency for investors in the wake of a currency crisis brought on by low oil prices.
Traders said the currency started to weaken last week as demand piled up especially from companies seeking to repatriate dividends and investors booking profits from local assets.
Importers buying goods from abroad were also exerting pressure on the naira.
This comes as the CBN boosted the inter-bank foreign exchange market on Tuesday with $210 million dollars.
CBN’s Acting Director, Corporate Communications, Mr Isaac Okorafor, said in a statement that the apex bank offered 100 million dollars to authorised dealers in the wholesale segment of the market.
He added that the Small and Medium Scale Enterprises (SMEs) segment received 55 million dollars, while 55 million dollars was apportioned to invisibles such as tuition fees, medical payments and Basic Travel Allowance.
Okoroafor said CBN has the capacity to continue to sustain the foreign exchange intervention and urged authorised dealers to help to sustain the confidence in the foreign exchange market by continuing to honour requests from customers with genuine needs.
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