By Babajide Komolafe

The Naira recorded missed performance in the foreign exchange market gaining 67 kobo in the official market but losing 18 kobo in the interbank market.

The official exchange rate fell to N148.5 per dollar last week from the closing rate of N149.17 per dollar the previous week, indicating 67 kobo appreciation. The interbank market rate however rose marginally to N152.2775 last week from N152.095, indicating 18.25 kobo depreciation.

The depreciation of the naira in the interbank market is due to unsatisfied demand of $189.2 million in the Wholesale Dutch Auction System (WDAS) foreign exchange session conducted on Wednesday by the Central Bank of Nigeria (CBN). Analysis of the foreign exchange auction show that  the apex bank sold $250 million while demand stood at $389.249 million.

In 2010  total demand fell to $27.57 billion from $38 billion in 2009, indicating 27 per cent decline, while the amount offered for sale by the CBN stood at $26.27 billion. The apex bank however sold $25.917 billion, representing 13.6 per cent decline when compared with $22.8 billion sold in 2009. The amount sold by the apex bank represents 94 per cent of foreign exchange demand at WDAS for the year.

Meanwhile, interbank interest rose slightly last week as scarcity of funds crept into the interbank money market. Interest rate on Call lending rose to 6.29 from 4.95 per cent, while rate for Seven Days and 30 Days lending rose to 8.03 and 10.6 from 6.66 and 9.5 per cent respectively.