Naira Weakens Against Dollars on demand pressure

At the Inter-bank market on Monday, May 19, amid the Central Bank of Nigeria's (CBN) $345.9mn defence, the Naira fell against the US dollars, losing N0.19k.

Although a total of $400mn was offered by the CBN, it sold a total of $345.9mn at the rate of N177.73/$ to some deposit banks at its Retail Dutch Auction System (RDAS).
The data from the Financial Market Dealers Quotation (FMDQ) also indicated that Naira closed on Monday, May 19, at N162.59/$ as against N162.40/$ at the Inter-bank market.

According to analyst, the pressure on naira is expected to continue this week on the back of pressure from external reserves, adding that although the Nigerian currency has recovered earlier losses, following increased portfolio investors interest, it remains outside of the CBN’s official +/-3% band around a mid-rate of N155.