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Nigerian Central Bank dollar sales fails to stop Naira weakening

Nigeria’s naira has fallen to its weakest level in six weeks in informal trading as central bank interventions in the official window failed to meet demand.

The local unit changed hands for 470 per dollar on Friday, the lowest since September 29, according to abokifx.com, a website that collates street rates in Lagos.

The naira closed at 382.10 per dollar on the spot market, where the central bank sells limited amounts of the greenback bank to importers.

The naira has lost all ground it gained after the regulator started weekly interventions, signalling the continuous existence of pent-up demand for the greenback.

Also read: Nigeria Naira rallies in Parallel Market as dollars expected

The Abuja-based central bank resumed sales to licensed bureau de change operators in September after the country opened up international travel following the lifting of COVID-19 restrictions.

The money available in the official window is insufficient to meet demand, Julius Tayo-Olufemi, chief executive officer of Cephas Grace International Ltd., which imports home appliances, said by phone.

Source: CGTN Africa

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