naira weakens at inter-bank, cbank auction

The naira weakened against the U.S dollar on both the inter-bank market and at the official central bank window as demand for dollar continue to outstrip supply. The value of the naira dropped to N160.20 to the dollar on the inter-bank, compared to N159.65 a dollar close on Friday. The value of the local currency dropped to N160.60 to the dollar after results of the bi-weekly auction showed a supply gap, but later firmed as the central bank sold dollars directly to some banks to curtail pressure on the naira.
On the official window, the central bank sold only $200 million at N157.26 to the dollar, short of the $315.63 million demanded. The CBN sold $250 million at N156.21 to the dollar at the previous auction on Wednesday. The central bank moved its target trading band for the naira last week to +/- 3 percent around 155 naira, from +/- 150 due to prolonged naira weakness and high dollar demand.