Business Naira Continues Free-fall, Hits Another Record Low Against Dollar

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The Nigerian Naira hit another record low against the dollar on Tuesday, trading outside the target band which the Central Bank of Nigeria, CBN, set last week after it auctioned dollars at the currency's newly devalued rate, Reuters reports.

The currency traded at 187.55 naira on the interbank market, or 6.2 percent below the lower end of the new band, shortly after the market opened, as dealers scrambled to fill orders not met at a central bank's twice-weekly auction on Monday.

It sold about $169 million dollars at 168 naira at the auction versus last week's rate of 165 naira, dealers said, compared with its usual $200 million and $300 million at previous auctions.

The bank has also been selling dollars daily to commercial lenders to try to prop up the currency.

"The market is reacting to the depreciation of the naira at the auction on Monday and central bank's inability to meet demand," one dealer said.

The bank set a target band of 5 percent plus or minus 168 naira to the dollar last week, an 8 percent devaluation, to try to halt a decline in the foreign reserves of Africa's leading energy producer as oil prices slump.


#Nigeria #Naira #Dollar #CBN

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