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Despite CBN’s $210m intervention, naira crashes to 505/$1

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Despite the Central Bank of Nigeria (CBN) injecting at least $210 million into the foreign currency market last week, the Nigerian Naira closed in the red in both official and unofficial markets.

Data obtained from FMDQ securities shows Naira weakened by 0.15 percent or N0.62k to close at N411.75k per dollar on Friday compared to the opening rate of N411.13k/$ on Monday.

Naira at the official market had opened the week with a slight gain of N0.12 or 0.03 percent to the U.S dollars from the previous trading session.

The gain was eroded on Tuesday, as Naira closed at N0.32 or 0.10 percent lower in value to the U.S dollar at N411.45/$1

On Wednesday, Naira’s exchange rate to the dollar maintained stability at N411.45/$1 the same rate it exchanged hands in the previous session on Tuesday.

On Thursday, the Nigerian currency rebounded, ending at N411.25 per $1, a N0.2 or 0.05 percent increase over the previous day’s rate of N411.45.

However, it fell on Friday to N411.75/$1, implying a N0.5 or 0.12 percent drop from the N411.25 rate it traded hands with US dollars on Thursday.

FMDQ securities data also revealed a 3.4 percent rise in forex supply in the official market on Friday, with $73.99 million reported versus $71.55 million at the start of the week.

Read also: Dangote refinery, five others to purchase crude in Naira

The black market Naira-to-dollar exchange rate was largely steady throughout the week until Friday.

Naira traded at N503/$1 from Monday to Thursday as speculators kept a watch eye over the impact of CBN intervention in the official market.

When it was clear there was a gap, black market traders crashed the Naira by N2.00 or 0.40 percent on Friday to N505/$1.

However, Naira gained to the British pounds by N2 to finish the week at N708 compared to N710 it started the week.

The Euro was stable through the week at N593.

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