The Central Bank of Nigeria (CBN) has held back its intervention in the parallel market as the naira continued its depreciation, reaching a new low of N330.
The apex bank had, instead, mopped up naira liquidity in the market as a way of shoring up the local currency.
This is the first time the value of the naira to the dollar crossed the N300 mark since the CBN lifted its peg on the local currency in June.
The naira which had closed trading at N295.25 to the dollar at the interbank market on Wednesday depreciated to N330 during trading yesterday before firming up at N295.88.
At the end of the day, total trades at the interbank market was $7.27 million as demand outweighed the short supply of the greenback.
“Now that the market has adjusted upwards it seems that people are comfortable and that’s why we are seeing some trades,” one trader said.