Nigeria’s local currency, Naira, depreciated marginally by 0.55 per cent at the parallel market week-on-week to close at N365 against the US Dollar on Friday, despite the frequent interventions by the Central Bank of Nigeria (CBN).
The local currency had closed at 363/dollar the previous Friday.
Currency retailers and analysts said the development came on the back of increased demand was occasioned by activities heralding the Christmas and New Year celebrations.
The President, Association of Bureaux De Change Operators of Nigeria, Mr. Aminu Gwadabe, said, “The spikes maybe as a result of the renewed political spending that is going to be a threat to naira stability; secondly, the differential exchange rates at the various official window is also discouraging genuine competition among operators which the parallel market always survived on.”
The interbank window of the nation’s foreign exchange market had last Tuesday received a boost of $210m from the CBN.
The interventions were made at the wholesale, the Small and Medium-scale Enterprises, and invisibles segments of the market.
The Acting Director, Corporate Communications, CBN, Mr. Isaac Okorafor, had said the bank offered the sum of $100m to the wholesale segment, while the SMEs and invisibles segments received the sum of $55m each.
He reiterated that the releases were meant to boost liquidity, trade and ease of remittances for legitimate personal commitments.