Naira Suffers 11-week Low over High Dollar Demand
The Nigerian currency, Naira suffered an 11-week low against the U.S dollar on the interbank market on Wednesday, following strong demand from banks buying the greenback for their foreign exchange change outlets.

The local currency closed at 156.15 to the dollar, its weakest since June 25, compared with 155.75 to the dollar at the close of trading on Tuesday, according to Reuters report. Traders said strong demand for dollars from lenders to re-sell to their exchange bureau outlets coupled with the depreciation of the naira at the central bank's bi-weekly auction put pressure on the local currency. At the official window, the central bank sold $400 million at 153.16 to the dollar, short of the $436 million demanded by end-users. The regulator sold $400 million at 152.81 to a dollar at the auction on Monday.

Traders said three oil companies, French Total, Agip and NPDC sold a total of $44.5 million to some lenders on Wednesday, but high demand reduced the impact of the inflows on the market. "We are expecting NNPC (state-owned energy company) and few others to sell dollars before Friday. This could provide some relief to the market and help support the naira, otherwise the naira will continue to depreciate," one dealer said. Dealers also said the naira could face pressure if the central bank continued to cut its price at official window.

"The central bank is the biggest supplier of forex to the market, so if it continues to allow the depreciation of the naira at its window, then the interbank market will take a cue from that," one dealer said