[size=13pt]Naira drops to all-time low in inter-bank market[/size]

The naira weakened further against the United States dollar on Thursday as the persistent strong demand for the foreign currency only received limited supply.


After closing at N158.45 to the dollar on the inter-bank market on Wednesday, the naira fell to an all-time low of N159.75 to the dollar at the close of activities on Thursday.


This fall in the local currency persisted regardless of the Central Bank of Nigeria’s attempt to raise supply at its bi-weekly auction and after it allowed the naira to appreciate at the official window.


On Wednesday, the CBN sold $700m at 154.60 to the dollar at its bi-weekly forex auction, a figure which represented the apex bank’s highest single sale since the beginning of the year, and against the $703.05m demanded.


Reuters reported that traders were sceptical about the regulator’s intentions to defend the naira, which fell beyond a target band of N150 +/-3 per cent at the previous auction and currently sells at 0.06 per cent beyond the range as posted on the official window.


Analysts had told our correspondent that the apex bank would halt the naira fall, as they stressed that the CBN would not relax and watch the naira fall to a level that would increase pressure on the economy and the country’s foreign reserves.


“The CBN may not be meeting its target of + or – three per cent of N150 at the moment, but that doesn’t meant it would allow the naira to continue depreciating beyond what Nigerians can bear,” the Research Analyst with BGL Securities Limited, Mr. Femi Ademola, had said.


Reuters quoted a dealer to have said, “The market is watching to see if this was a one-off thing or the CBN would show seriousness in the subsequent auction in defending the naira currency.”


Another trader said there was tight dollar liquidity, with growing demand from importers stocking up for year-end sales.


“There is no dollar liquidity, yet demand remained strong so what we expect is that the naira will continue to depreciate until the next auction by the CBN on Wednesday,” the dealer said.


Traders had earlier speculated that the naira would hit N160 to the dollar following its downward trends which had persisted and had gone beyond the apex bank’s range at its official window.


Commenting on the possible slide of the naira to N160 per dollar, Ademola said, “I want to say that we don’t see that happening, and this is because you will discover that last month there were even some actions that the CBN took which quickly doused the tension at the dollar market.”

http://www.punchng.com/Articl.aspx?theartic=Art20110930258939

The Naira, however, seems to have gained against the British Pound in the last few days. I changed Naira to pounds at the rate of N256.50k just yesterday, against N276 to the same pounds I was quoted 2 weeks ago.

Odechukwu where are you

That doesnt mean naira will not fall again.I pray that God will revive this country and save us from false leaders rubbing and killing this country.


Click on the link below for your WISH to come true.

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wishes </a><br><br>

Retardeen is on top of the situation

lovely_S:

That doesnt mean naira will not fall again.I pray that God will revive this country and save us from false leaders rubbing and killing this country.


Click on the link below for your WISH to come true.

<br><br><a href="http://www.real-wishes.com" title=" wishes " name=" wishes "><img src="http://www.real-wishes.com/images/wish-3.jpg" alt=" wishes " title=" wishes "/>
wishes </a><br><br>

Amen