Data obtained from the Financial Market Dealers Association (FMDA) revealed that the naira depreciated yesterday against the dollars (US) at the interbank segment of the foreign exchange market.
The naira dropped by 50kobo to close at N158.60 to a dollar, as against N158.10 on Wednesday.
According to the Regional Head of Research, Africa, Standard Chartered Bank, Razia Khan, the recent decline in crude oil price can be attributed to be the cause of the naira depreciation.
“Any emergence of pressure on the forex rate might complicate the inflation outlook, and keep the Central Bank of Nigeria (CBN) on hold a while longer,” Khan said.
He also added that with the decline in the Bonny Light, investors are probably going “to be paying close attention to Nigeria oil sensitivity.”
Similarly, currency analysts at the Ecobank Group, Kunle Ezun and Kenneth Asenime, explained in a joint statement that the naira depreciation reflected increased dollar demand to cover import bills and other forex obligations.
“Although the naira has weakening outlook, the steady rise in forex reserves to $48.7 billion and CBN’s Monetary Policy Committee (MPC) decision to hold rate unchanged at 12 per cent would provide a large cushion to support the naira in the weeks ahead,” they said.
However, at the CBN’s regulated Wholesale Dutch Auction System (WDAS), the naira was stable and closed at N155.75 to a dollar on wednesday.