Result of FX auction later today
As part of efforts to support the Naira and manage inflation, the Central Bank of Nigeria, CBN on Friday debited N216 billion naira from money deposit banks’ reserves.
Recall that the local currency has been pummelled in recent times due to the COVID-19 impact and drop in the price of crude oil prices, as well as the exit of foreign portfolio investors to more favourable markets.
The currency has been hitting new lows on the over-the-counter spot and the parallel markets since March after the CBN adjusted its official rate, implying a 15 per cent devaluation, to absorb the impact of an oil price crash.
Also, read Nigeria Naira weakens to N452/$
The naira traded at 385 on the official market this week, weaker than a quoted rate of 361, backed by the CBN.
The debit from the banks came shortly before a FX auction on Friday, the result of which will be due later today.