Naira Weakens Against Dollar

Nigerian currency Naira on Monday, May 14, depreciated against the United States dollar at the parallel market in Lagos.

The local currency lost 1.1 points to exchange at N362.3, weaker than N361.2 posted on Friday, while the Pound Sterling and the Euro closed at N497 and N429, respectively.

At the Bureau De Change (BDC) window, the naira was sold at N362 to the dollar, while the Pound Sterling and the Euro closed at N497 and N429, respectively.

Trading at the investors’ window saw the naira close at N361.57, while it was sold at N305.8, CBN rate.

Currency traders express confidence that the naira would witness better times as the currency- swap deal between Nigeria and China gets underway.

Meanwhile, experts are worried that political spending in the months ahead might affect the stability of the naira.

It is understood that the aggressive liquidity mop up operations conducted by the Central Bank of Nigeria (CBN) last week is expected to persist this week as inflow of N330 billion boost interbank money market liquidity.

In a bid to tackle excess liquidity in the interbank money market, worsened last week by inflow of N290 billion, the apex bank mopped up N454 billion from the market by selling secondary market (Open Market Operations, OMO) treasury bills.