The naira on Monday dropped, closing at N390 against the United States dollar at the parallel market.
The local currency which recorded gains early last week had closed at 380/dollar on Friday.
While it continued to hover between 380/dollar and 410/dollar in the past two weeks, the Central Bank of Nigeria (CBN) also continued to intervene in the foreign exchange market to stabilise the exchange rate.
The aim of the intervention, it is understood, is to narrow the spread between the official and black market rates of the naira against the dollar.
This is even as analysts have estimated the intervention by the apex bank since February – when it started – to around $4bn.
After touching an all-time-low of 520/dollar in February, the CBN had increased forex supply into the market to enhance the naira.
As a result, the naira appreciated to 375/dollar in March. However, following some speculative activities and other market dynamics, the local currency fell to 410/dollar two weeks ago.
Last week, the naira reversed the loss and rose to 380/dollar after the CBN increased forex supply.
In the meantime, the CBN has offered the sum of $246.2m to authorised dealers at the forex auction in the interbank wholesale window, the Small and Medium-scale Enterprises and invisibles’ segments on Monday.
A breakdown of the total offer indicates that the sum of $150m was auctioned at the wholesale window while the SMEs and invisibles got $52m and $44.2m, respectively.
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