Naira falls to 370 per Dollar at parallel market

Naira falls to 370 per Dollar at parallel market

- Naira after the Ramadan holiday has dropped to N370/$1 at the parallel market

- The local currency depreciated comes at a period the CBN is selling $100 million at a special foreign exchange auction

- The apex bank has been intervening on the official market in the last few months to try to narrow the spread between rates on the official market and black market

The appreciation of the Naira at the parallel market was on Wednesday, June 28, halted despite the Central Bank of Nigeria (CBN) selling $100 million at a special foreign exchange auction.

According to NAIJ.com findings, the local currency depreciated by 0.54 percent to 370/$1, after a two-day public holiday to mark Muslim festival of Eid-al-Fitr.

The Naira also retained the N465 rate against the Pound and the N410 against the Euro.

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Naira Depreciates To 370 Per Dollar At Parallel Market

Naira depreciates to 370 per Dollar

This development is coming as the Central Bank of Nigeria (CBN) sells $100 million at a special foreign exchange auction on Wednesday as the local currency held steady in all segments of the foreign exchange market.

The regulator in a notice to commercial lenders, said the dollar auction would be for spot and forward deals which would be settled within the next 60 days.

The central bank has been intervening on the official market in the last few months to try to narrow the spread between rates on the official market and black market. It has sold over $5 billion since February.

Nigeria is contending with a currency crisis brought on by low oil prices, which has tipped Africa's largest economy into recession and created chronic dollar shortages.

Nigeria wants to attract foreign investors and at the same time maintain a strong currency to ward off inflation.

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It has at least six different exchange rates, including a retail rate set by licensed exchange bureaus, official and black market rates and a window for investors where the naira can be traded at rates set freely between buyers and sellers.

Can N1 ever become $1 again at Forex Market? Watch Nigerians respond to this question

Source: Naij.com

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