By InvestAdvocate

Lagos (INVESTADVOCATE) – The Central Bank of Nigeria (CBN) said on Thursday the interbank market rate closed at N198/$1 at the end of the day’s transactions compared to N198.50/$1 it closed on Friday.

A Reuters report affirmed that the CBN requested banks to once again submit their dollar demand levels as it prepares to sell dollars to support the naira currency, quoting dealers on Monday.

The report affirmed that the naira crashed through the psychologically important level of 200 to the dollar last week in a rout triggered by weak oil prices and escalating tension over the postponement of a presidential election in the country.

The report quoted dealers as saying that the CBN had informed lenders that it would sell dollars to the interbank at N198 to the dollar, and that two-way trading on the interbank market will depend on the level of liquidity.

According to the Reuters Nigerian banks were also not allowed to resell central bank dollars among themselves on the interbank market to curb speculation, quoting dealers.

The CBN has vowed to stabilise the naira and has been deploying various measures. “The bank injected large dollar supply on Friday to allow dealers fill their demand levels but banned them from reselling dollars bought at a currency auction to other banks,” the report added.

Ibrahim Muazu, CBN’s spokesman had told Reuters on Friday that the central bank will continue to intervene on a “need basis” to satisfy dollar demand and curb speculative attacks, which he said, was the reason behind the currency weakness and not devalue the naira again.