The declining fortunes of the naira persisted on Wednesday at the Wholesale Dutch Auction System (WDAS) session and the interbank market.
At the WDAS the naira depreciated by 22 kobo as the official exchange rate rose to N153.18 per dollar. The depreciation was triggered by 10 per cent rise in demand for foreign exchange.
Demand rose to about $440 million from $384 million on Monday, but the Central Bank of Nigeria (CBN) sold $300 million hence $140 million unsatisfied demand.
This occasioned the interbank exchange rate to rise to to N156.89 per dollar from N156.79 on Tuesday, indicating 10 kobo depreciation for the naira.
Cumulatively the naira has depreciated by 36 kobo in the official market this week and by 67 kobo in the interbank market.
Meanwhile interbank interest rates rose for the third consecutive day this week due to severe scarcity of funds.
Data from the Financial Market Dealers Association indicate that interest rate on Call, 7-Days and 30 Days lending rose by five basis points on the average yesterday. Call rose to 13.58 from 13.54 on Tuesday while 7-Days and 30-Days rose to 13.92 and 14.46 per cent from 13.88 and 14.38 per cent.
Interest rate has been rising in the market since the beginning of the week due to scarcity of funds aggravated by outflow through foreign exchange purchases and investment in FGN Bonds and Treasury bills. On the average the three tenors have risen by 45 basis points between Friday last week and yesterday.