Naira Slides Further On Fear Of Devaluation

The naira continued its slide yesterday as the Central Bank of Nigeria (CBN) sold $400 million at 156.91 naira to the dollar at its bi-weekly foreign exchange auction.

This was short of the $736.94 million demanded by authorized dealers.

Pronouncements that the naira would be devalued next year have put further pressure on the currency at the three segments of the market.

At the interbank market, the currency reached an all time low of N167.40 to the dollar before closing at N164.30 while at the parallel market, it sold for N168 at the close of trade yesterday.

“The announcement of possible devaluation is making people take position in the currency market which has pushed the naira value down, said Suleiman Ghali, a Lagos-based currency trader.
The naira has been on free fall since the statement by the CBN governor, Lamido Sanusi that it would not defend? the naira at all cost.