At N725/$, Naira Drops To New Low at Black Market
Nigeria’s local currency, Naira, on Wednesday depreciated by record 0.42 percent to N725 per dollar, the lowest level ever recorded at the country’s parallel market.
The local currency has suffered accelerated depreciation in the last three days, falling from N713 on Monday to N722 per dollar on Tuesday, before crashing to N725 per dollar on Wednesday.
This implies that despite Central Bank of Nigeria’s ambitious defence of Naira, the domestic medium of exchange depreciated by as much as N12 or 1.6 percent to settle at N725 per dollar on Wednesday.
But at the official Investors and Exporters window, the Naira was flat at N436.3 per $1. It had declined 0.08 percent against the US dollar to close at N436.3 per $1 on Tuesday, 27th September 2022,
compared to N436/$1 recorded in previous session on Monday.
The overnight lending rate expanded by 183bps to 16.8 percent, in the absence of any significant outflow from the system.
The Treasury bills secondary market traded quietly with average yield flat at 7.4 percent. Elsewhere at the Open Market Operation (OMO), the average yield expanded by 88bps to 10.3 percent.
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