Naira hit three-month low despite CBN intervention

The naira fell 0.34 per cent to a three-month closing low of N163.45 against the dollar on Wednesday, despite the Central Bank of Nigeria’s intervening for a second day to halt its slide, dealers said.

The currency fell as low as N163.70 on strong demand for dollars during intraday trade before the central bank’s action help it to recover to N163.45, a level last seen on June 16.

The naira had closed at N162.90 on Tuesday. The CBN had on Tuesday intervened to support the naira after the local currency shed 0.57 per cent from the start of the day’s trade to N163.85 against the dollar.

On Monday, the naira was unchanged at N162.95 at Monday’s market close, after the CBN asked banks for bids to sell the greenback in a move to quell dollar shortages and support the naira.

According to Reuters, the local unit opened at N163.05 to the United States currency, and weakened further to N163.50 intraday on strong demand, prompting central bank’s interest, Reuters reported.

Dealers said dollar flows had slowed after the Nigerian National Petroleum Corporation, which accounts for bulk of dollar supply on the interbank, sold about $300m last week, which failed to lift the local currency.