By Agency Reporter   Thursday, 9 Sep 2010

 

The naira eased further to N151.80 to the United States dollar on the interbank market on Wednesday from 151.45 on Tuesday after the Central Bank of Nigeria failed to meet all demand at an official forex auction, traders said.

Reuters reported from Lagos on Wednesday that the central bank sold $300m at N149.30 to the dollar, short of the $387m demanded on Wednesday. The regulator had sold $250m at 149.18 at Monday‘s auction, falling short of demand of $303m.

”There is a lot of demand for the dollar in the market, especially from the downstream oil companies (fuel retailers), forcing down the value of the naira,” one dealer said.

Dealers said three energy firms sold about $26.5m on Monday and Tuesday, but that was not enough to help firm the naira.

The naira is expected to trade within the present band of N150.79 to N151.80 early next week, depending on the willingness of the CBN to sustain support for the currency.

Source: The Punch