The naira closed at a seven-month low against the dollar on Wednesday.

The local currency closed against the greenback at N164.50, despite a Central Bank of Nigeria intervention.

This came as falling oil prices pushed investors out of domestic debt and equity markets, dealers said.

The naira had firmed up by 0.12 per cent to close at N163.70 against the dollar last Monday, after the CBN sold dollars directly to lenders on the interbank market to prop up the ailing currency.

Reuters reported that the central bank had intervened with an undisclosed amount of dollars after the currency eased to around N164.15 by midday trade. The naira had closed at N163.90 the previous week.

The naira has been falling for the past four weeks, weakened by the impact of the decline in global oil prices and low offshore inflows into Nigeria’s debt and equity markets.

“We expect the central bank to continue to support … and reduce pressure on the naira,” one dealer said.

At a foreign exchange auction last Monday, the central bank hiked the amount of dollars it offered to sell to $500m, up from the $350m it offered in the past quarter.

Dealers attributed the increase in amount sold by the central bank at the twice-weekly auction last Monday to the public holiday declared this Wednesday to mark the nation’s Independence Day celebrations.

Punch