Why Naira depreciated against American Dollars in 4 days”
A surge in demand for dollars in the parallel market driven by banks and end-users combined with slow forex disbursement to BDCs by the Central Bank of Nigeria, CBN, caused the Naira, last week, to fall by 23 per cent against the dollar, thus recording the worst weekly performance of the Naira since February.
Vanguard reports though the CBN came to the rescue of the Naira on Friday by intervening in the official Nigeria Foreign Exchange Market, NAFEM, hence the appreciation of the Naira in the parallel market on Friday, currency dealers and analysts were uncertain about the fortunes of the Naira this week, citing pace and speed of CBN intervention as a determining factor.
After two months of steady appreciation to N1,140 on Friday, April 19, from N1,1,820 per dollar on Wednesday, March 21, the Naira, last week, depreciated for four consecutive days by N285 (25%) to N1,405 per dollar on Thursday, April 25th.
Following the same trend in the official market, the Naira depreciated by N169.24 (9.9%) to N1,339.23 per dollar on Friday last week, April 26th, from N1,169.99 per dollar on Friday, April 19.
