Naira Falls on Liquidity Issue

Naira declined further on Wednesday as liquidity remained a challenge at the black market.

The Nigerian Naira depreciated by ₦3 to ₦478 against the United States Dollar, down from ₦475 it exchanged on Tuesday.

While against the European common currency it declined by ₦4 from ₦553 it traded on Tuesday to ₦557 on Wednesday.

But adjusted slightly against the British Pound as it gained ₦1 from ₦608 on Tuesday to ₦607 on Wednesday. Still, the lowest for the local currency in over 12 weeks.

Against Bitcoin, the Naira declined to ₦8.527 million, down from about ₦7.5 million it was exchanged a week ago.

Ethereum also gained around 30,000 to ₦228,200 against the Nigerian Naira while Litcoin stood at ₦35,501.91 per coin.

Last week, the Managing Director/Chief Executive Officer, Mr Bismarck Rewane, attributed the falling Naira value to weak revenue generation and rising dollar demand due to the reopening of businesses.

He said other factors like the International Monetary Fund conditionality for the $3.4 billion loan may come to play and force the central bank to devalue the Naira again to ₦400 per United States Dollar.

“As Nigeria ponders IMF’s conditionalities, CBN could succumb to pressure and devalue the naira to ₦390-400/$,” he stated.