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Economy: Naira depreciates again by 34 kobo


The declining fortune of the naira at the official foreign exchange market persisted yesterday as it lost 34 kobo at the bi-weekly foreign exchange auction.

This was in spite of 19.6 per cent decline in demand for foreign exchange to $476 million from $592 on Monday at the Wholesale Dutch Auction System, WDAS, auction. The depreciation was prompted by 12.5 per cent decline in the amount offered and sold by the  Central Bank of Nigeria, CBN. This fell to $350 million from $400 million in the previous auction. This resulted to a demand gap of $124 million, which caused the official exchange rate to rise to N150.35 from N150.01 per dollar.

Consequently the naira had depreciated 49 kobo at the official market this week.

But at the interbank market yesterday, the naira recorded marginal appreciation of 0.25 kobo as the interbank exchange rate fell to N153.8 from N153.825 per dollar.

On Monday the naira   depreciated by 25 kobo as the official exchange rate rose to N151 from N150.75 per dollar. At the interbank market, it depreciated by 32.5 kobo as the interbank exchange rate rose to N153.695 from N153.6 per dollar.

The depreciation was occasioned by 60 per cent demand for foreign exchange at the bi-weekly foreign exchange auction conducted by the Central Bank of Nigeria (CBN) on Monday.


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