Proshare Logo
   Market Date: 23-01-2015   
Agriculture ARTS FINANCE All One Min News Archives Bonds Cap Mkt Sentiments Capital Market CASHLESS NIGERIA Commodities Corporate Earnings Daily & Weekly Market Updates Elections Enterpreneurship ETFs Forex Frauds & Scandals General Global Market Insurance Investors NewsBeat Islamic Finance Mergers & Aquisitions Money Market Mortgage Mutual Funds Nigeria Economy Oil Sector Opinions and Analysis Pensions People Personal Finance Politics Power Products & Services Professionals Property Public Offers Private Placements Regulators REITs Stock PICKS Taxation Telcos Travel & Tours Unlisted OTC MARKET World of Business

Nigerian naira eases on importer dollar demand

Category: Forex

  Read (2093)
Nigerian naira eases on importer dollar demand

Monday January 23, 2012

The Nigerian naira eased against the U.S. dollar on the interbank market and at the central bank's bi-weekly auction on Monday as importer activity gradually resumed in the south of the country after strikes over the withdrawal of fuel subsidies.

Traders said the outbreak of violence in the northern city of Kano last week in which Islamist insurgents killed at least 178 people had little impact on the naira.

They said the naira depreciated due to increased dollar demand by importers mostly based in the southern part of Africa's second biggest economy.

The naira closed at 161.30 to the dollar on the interbank market on Monday, higher than Friday's close of 160.90 naira.

Dealers said strong demand for the greenback by importers has reduced the level of liquidity in the market, causing the naira to weaken.

State-owned energy company NNPC sold about $550 million to some lenders on Friday, providing support for the local currency which firmed then to its strongest level in 18 days but liquidity has dried up from the system.

"The market reacted to the depreciation of the naira at the official window, especially since the central bank continues to hold back information on the level of demand at its auction," one dealer said.

The central bank sold $250 million at 157 naira to the dollar at its bi-weekly auction on Monday, the same amount it sold at 156.85 naira at its last auction on Wednesday. It did not disclose the level of demand.

Traders say withholding information on the level of demand at the central bank's auction could weigh negatively on the naira and trigger speculative purchases on the interbank market.

"As the economy resumes full activities, more demand for the dollar will flood the market and the naira should depreciate further unless there is a major dollar sale by some oil companies," another dealer said. 

Source: Reuters (Reporting by Oludare Mayowa)

Tags: , 

Comment With Your Facebook or Yahoo! ID

Latest news

News on Forex

About Us

Who We Are
Our Team & Partners
Corporate Governance
Advertise with Us
Subscribe / Unsubscribe
Site Map
News Feed - RSS
Contact Us
Volunteer Program
Message from CEO

News & Features
The Analyst / Market Data
Investor Relations Portal
The Regulator
Economy & Politics
Training Portal
Events Calendar
NewsStands - Online Reputation

Products and Services

Research & Market Intelligence
Analyst Services
Offers & Rights Support Service
Investor Relations Services
Alert & Subscription Services
Share Support Services
Proshare Consult
Event & Seminar Coverage
Market Directory
File a Complaint
News & Analysis

News from TheANALYST
Video News from WebTV
Money Market Updates
Opinions & Analysis
Nigerian Economy
Market Data
The Regulator
Discussion Forum

Subscriber Agreement
Privacy Policy
Data Policy
Copyright Policy
Comments in Site
Advertising Code
Conflict of Interest
Content Partnership
3rd Parties

Online Trading and Execution
Legal Support Services
Web/Technology Services
File a Complaint

CBN Governor 2014