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In spite of the Central Bank of Nigeria’s interventions in the official window, Nigeria’s Naira on Friday bowed slid to 470 against the Unided States Dollar in the parallel market.
The Nigerian currency had traded at N465, N466 and N468 against the greenback on Tuesday, Wednesday and Thursday respectively, but later on Friday hit its weakest level in more than a month.
The naira, according to Bloomberg, closed at 382.10 per dollar on the spot market, where the CBN sells limited amounts of the greenback to importers.
The international news agency reported that the naira had lost every ground it gained after the regulator started weekly interventions, signaling the continuous existence of pent-up demand for the greenback.
The CBN resumed sales to licensed Bureau de Change operators in September after the Federal Government opened up international travel following the lifting of COVID-19 restrictions.
Mr Bismarck Rewane, a public commentator, said last week that the naira would weaken in the parallel market and likely depreciate to 470-475 against the dollar in November and December.
He said with oil prices still under pressure again, the supply of forex into the country would be further limited, adding that the resumption in international flights, trading and manufacturing activities would heighten forex demand pressures.
The nation’s foreign exchange reserves had fallen to the lowest level in more than two months.
As of November 10, the forex reserves stood at $35.63bn, the lowest since August 24, according to the latest data from the Central Bank of Nigeria.