Naira depreciates against major currencies

The naira at the parallel market depreciated against three international currencies at the close of trading for the week.

A survey carried out by NAN in Lagos on Friday showed that the Nigerian currency depreciated by N1 or 0.45 per cent against the dollar due to high demand.

It sold for N221 against the dollar from the N220, which was the rate on Monday, June 15.

The naira also lost N27 to sell at N352 to the pound, representing 8.31 percent depreciation from the N325 it traded on June 15.

Against the euro, it went for N245 compared with the N238 it sold on June 15, representing N7 or 2.97 percent drop.

However, at the Central Bank of Nigeria (CBN), the official rate has remained N196.90 since June 11 but it fell by N7.96 or 2.61 percent to the pound, selling for N313.31 from the N305.31 it sold on June 15.

The currency also depreciated against the euro to sell for N224.58 compared with the N220.74 it traded on Monday.

Harrison Owoh, a bureau de change operator, said that the depreciation in all segments was due to a shortfall between demand and the foreign exchange available for sale.

Owoh, who is the managing director of HJ Trust Investment Ltd., Lagos, said more shortfall in forex supply may lead to further depreciation.