Forex scarcity sustains pressure on Naira
The exchange rate remained pressured last week over foreign exchange (forex) liquidity constraints, as the interbank market rates for spot trades oscillated between N312-N317.50/$ al, through the week.
However, in the parallel market, the exchange rate closed flat week-on-week at N397/$, though traded as high as N393/$ earlier in the week. The naira hit all-time low of N365.25 to the dollar on Thursday at the interbank market.
Already, analysts said the market will remain pressured in the interim, especially at the parallel market, until sizeable amount of forex flows into the system.
Central Bank of Nigeria (CBN) had last week, increased the sale of forex to a single Bureau De Change operator from $30,000 to $50,000 weekly.
The relative paucity of forex inflow generally has been put on struggling investor confidence, as many foreign investors are said to be watching ongoing reforms and their sustainability.
The pared earlier losses, recording about 5.2 per cent appreciation after the central bank sold undisclosed amount of dollars to support the currency.
The apex bank has been selling dollars to boost liquidity and support the naira, in anticipations of the return of offshore flows.