Hundreds of millions of dollars have been pumped into the foreign exchange market by the Central Bank of Nigeria, to shore up the value of the Naira, yet the currency is still shading weight.

At the close of business last week, the Naira depreciated marginally by 0.55% at the parallel market closing at 365 Naira.

The currency had closed at 363 Naira per dollar at the close of business the previous Friday.

Currency retailers and analysts said the development is because of increased demand occasioned by activities heralding the Christmas and New Year celebrations.

The President, Association of Bureaux De Change Operators of Nigeria, Mr Aminu Gwadabe, said this was just part of foreign exchange market fluctuations.

Also Read: BE READY: CBN’s Forex Interventions Will Haunt Nigeria In The Future - IMF

“The spikes maybe as a result of the renewed political spending that is going to be a threat to Naira stability. Secondly, the differential exchange rates at the various official window is also discouraging genuine competition among operators which the parallel market always survived on,” he said.

According to a currency analyst at Ecobank Nigeria, Mr Kunle Ezun, told the media that the Naira will likely depreciate further this week following the suspension of the Open Market Operations by the regulator.

"Once you have interest rate at this low level, traders can avoid money to buy from the foreign exchange either for Christmas goods or to speculate.

"It has started from last week when Naira closed against the Dollar at 365 Naira. For me, it might get to 370 Naira if care is not taken,” Ezun said.

Also Watch: How Start Ups Can Break Into The Nigerian Market