Naira weakens further as CBN set to clear dollar backlogs for importers

Nigeria’s local currency, the naira has further crashed to N458 to a dollar as against the N455 it traded on Thursday, March 1

The Naira also weakened to N540 against the Pound from the previous rate of N535 and to N475 against the Euro as against the previous rate of N460.

Recall that just last week, the value of the Naira recorded the highest and fastest gain of 11.9 per cent in four days at the parallel market, in over three years.

This follows the Central Bank of Nigeria (CBN) decision to sell a total of $372.4 million to ease the pressure on the local currency.

Financial experts had predicted that the local currency will continue to appreciate if the status quo was maintained.

On its part, the CBN said the recent appreciation of the Naira against other currencies was the result of its market monitoring and intervention.

Meanwhile the Central Bank of Nigeria (CBN) said on Thursday that it will sell dollars via a book-building process to clear a backlog of dollar demand for companies importing machinery, airline equipment and petroleum products.

Companies would be required to pay the naira equivalent for their dollar bids on the spot market on Thursday, while the dollars will be delivered in two months’ time, CBN told commercial banks.

It did not say how much it would offer at the sale.