Naira falls to lowest level in eight weeks

Posted by admin Headlines Tuesday, January 24th, 2012

By Babajide Komolafe

LAGOS – The Naira, yesterday, fell to its lowest level against the United States dollar at the official foreign exchange market where it depreciated by another 15 kobo.

At the foreign exchange auction conducted by the Central Bank of Nigeria, CBN, under the Wholesale Dutch Auction System, WDAS, the Naira depreciated by 15 kobo as the official exchange rate rose to N157 per dollar from N156.85 last week. Result of the auction indicated the apex bank sold $250 million but the amount demanded was not indicated.

The Naira also depreciated by 27 kobo at the interbank foreign exchange market where the interbank rate rose to N161.22 per dollar from N160.95 last week. The depreciation of the Naira in both segments of the foreign exchange market reflect demand pressure in the foreign exchange market.

Cumulatively, the naira has depreciated by 30 kobo against the dollar at the official market, where it opened the year at N156.7 per dollar. Also the CBN has sold $1.419 billion since the market opened on January 4.

On the international scene, the euro strengthened to an almost three-week high against the dollar as French Finance Minister Francois Baroin said negotiations between Greece and its private creditors were making “tangible progress.”

-Vanguardwp_posts