Naira depreciates against dollar

The value of the naira sank lower by 60 kobo against the value of the dollar at the inter-bank market on Monday, as a result of rising demand by some banks to meet their customers’ request for dollars, as the amount of dollar available dries up in the market. The naira closed at N157.90 to the dollar compared with the N157.30 to the dollar on Friday.
Bank treasurers said the naira eased to N158.35 intraday before it finally settled at the N157.90 level, at the close of the market, on buying pressure from banks meeting their customers’ demand for dollars. A bank treasurer said the central bank was not meeting all demand for dollars at the auction, while more customers were resorting to the inter-bank to fill their needs.
The naira has performed well against the dollar since the start of the year, largely driven up by offshore investors into local debt instruments, which currently offer attractive yields. “We expect that the naira will rebound this week as speculation is that there’s an NNPC plan to sell around $300 million to fill the market,” another bank treasurer said. At the bi-weekly auction, the central bank sold $150 million at N156.06 to the dollar, compared with $150 million sold at N156.01 to the dollar at the previous auction on Wednesday.