LAGOS, Sept 29 – The Nigerian naira fell to its weakest ever in the interbank market on Thursday as concerns that the central bank is losing some of its resolve to support the local currency drained trader confidence.
The Central Bank of Nigeria, which auctions U.S. dollars twice a week to help support the naira, broke its own target of keeping the naira within a 3 percent above or below 150 to the U.S. dollar on Monday.
Although the CBN said it has not yet decided to retire its support band, by trading naira at weaker levels than its own target it has raised fears of a potential devaluation of the local currency.
Source: Reuters Africa newsletter
Did you find this information helpful? If you did, consider donating.