Naira Slumps Further, Exchanges For 485/$

The Naira slumped further as it exchanged to a Dollar for 485 at the parallel market on Friday, after starting the week at 483/$.

At the Investor & Exporter Forex window, the exchange rate hit a high of N412/$ before closing at N410.05.

The Central Bank of Nigeria recently disclosed that the Naira depreciated at the official market to N410 against the Dollar.

“In order to adjust for the decrease in supply of foreign exchange, the Naira depreciated at the official window from 305/$ to 360/$ and now hovers around 410/$,” it stated.

It also revealed that it injected $5.62bn into the foreign exchange market in the fourth quarter of 2020 as part of efforts to ensure the stability of the Naira.

This was an increase of $1.25bn from $4.37bn intervention in the economy by the banking regulator in the third quarter.

It stated, “The bank maintained its periodic interventions in the foreign exchange market to boost liquidity, enhance access to foreign exchange, curb unbridled demand and ensure stable exchange rate.

“During the fourth quarter of 2020, total foreign exchange sales to authorised dealers by the bank stood at $5.62bn, an increase of 28.7 per cent above the level in the preceding quarter.

“This was attributed, largely, to the increased interventions in the BDC and I&E windows during the quarter.”

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