Naira over the weekend suffered a slight setback against the greenback on the parallel market, exchanging for N320 per dollar on Friday as against the N318/$1 on Thursday, April 7.
Bureau de change operators claim the fall in naira can be attributed to the recent fuel crisis,most especially on the foreign exchange market where the dollar is still firmly defeating the naira.
“The recent fuel scarcity is apparently one of the reasons we are having the present issues with the exchange rates,” a BDC operator said. “We do hope in all sincerity that the government would do something about the lingering crisis.”
Another source, however, revealed that the exchange rate stands at N318, but that it is N321 per dollar if one was willing “to buy any moment from now.”
Meanwhile, the overnight interbank rate eased on Friday to around 3.5 per cent from 5 per cent last week, even though liquidity in the system fell as banks set aside cash for reserves and for interest on deposits.
A dealer said: “We consider market liquidity sufficient at the present level to support transactions and this accounts for the drop in cost of borrowing among banks.”
Traders said that liquidity dropped from about N564.35 billion ($2.84 billion) last week to about N401.7 billion on Friday due to premium payments to the Nigerian Deposit Insurance Corporation (NDIC) and cash reserve ratio (CRR) debits on Thursday.