The naira depreciated marginally against the United States dollar at all the forex market segments last week due to strong demand for the greenback.
Specifically, while the nation’s currency shed 76 kobo at the interbank market to close at N162.21 to a dollar on Friday, it fell by N2 at the Bureau De Change (BDC) to close at a N172.50 to a dollar. Similarly, at the parallel market, the naira also depreciated by 58 kobo to close at N173 to a dollar.
The trend also continued at the Retail Dutch Auction System (RDAS), the official forex market as the local currency also dropped slightly by two kobo to close at N155.74 to a dollar.
The Central Bank of Nigeria (CBN) sold a total of $699.96 million to end users at the bi-weekly regulated forex market; out of the $700 million it offered the market. In comparison with other major currencies in the international market, the naira also depreciated against the Pounds and Euro by N4.24 and N1.11 respectively to close at N263.21 and N217.90.
“This week, we expect the pressure on the naira to be sustained due to the declining foreign exchange reserves and slowdown in foreign portfolio,” analysts at Cowry Asset Management Limited said it a report at the weekend.