CBN Intervenes In Naira Free-Fall
Following unprecedented depreciation of the Naira at the inter-bank foreign exchange market in the last one week, the Central Bank of Nigeria, CBN, intervened yesterday to stall further slide.The apex bank reportedly offered about USD5million each to dealers due to scarcity of foreign currency which had persisted since last week Friday.
It was learnt that the central bank intervention saved the Naira from crashing to N350/ USD1 yesterday as the rate was already gone beyond N330 as at mid day
However, the currency still depreciated at the parallel market trading N380/ USD as against N375 it closed on Thursday,
The depreciation of the Naira, dealer believed is attributed to the lack of supply from CBN following reports that the apex bank had reduced its forex allocations to sales in the interbank market due to other pressing needs for the foreign exchange resources amidst dwindling dollar revenue from oil sales.
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