Naira rises to 307/dollar at interbank market

The naira rose slightly against the dollar at the interbank market to 307 on Friday, up from 310 it closed on Thursday.

The naira had hit had a record low of 330 per dollar at the regular interbank trading on Friday, falling 9.5 per cent as traders tested lower levels seeking to attract liquidity in the absence of the Central Bank of Nigeria interventions.

The naira slipped to 298.50 per dollar on thin volumes at market open and extended losses to trade a total volume of $26.97m by 1203 GMT, Reuters reported.

On Thursday, the naira crossed 300 for the first time and hit 330.50 in off-market trades.

Traders were expecting the CBN to intervene to ease dollar shortages, which did not materialise.

According to traders, the CBN has not intervened for most of this week. Instead it was mopping up naira liquidity to support the currency.

“We are looking at what will be a comfortable rate for sellers to come back to the market,” one trader said, referring to foreign players.

“Most banks are quoting around 300 levels but liquidity is still thin. The central bank hasn’t participated this week,” he said.

The CBN ditched its 16-month-old peg of N197 to the dollar last month. But the lack of liquidity has curbed activity, leaving the CBN as the main supplier of dollars.








Source: Thenigeriablogger