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#NAIRA# NAIRA WEAKEN TO 398 DOLLAR ON THE BLACK MARKET

Nigeria’s naira weakened against the dollar on the black market on Wednesday even as the central bank increased the supply of dollars to currency retail bureaux in an attempt to boost support for the local currency.

The naira weakened to about 398 a dollar on the black market, against 390 per dollar on Friday.

The Nigerian currency however closed at 306.20 to the dollar on the official interbank market, slightly higher than it closed on Tuesday.

The currency continues to weaken despite efforts by the Central Bank of Nigeria to boost the currency.

Just recently, the CBN announced plans to sell dollar forwards to be delivered within two months to manufacturers, airlines, fuel importers and agriculture businesses.

The bank also announced plans to sell $10,000 to bureau de change operators twice a week all in effort to ease the pressure on the local currency.

With the planned sales, retail currency bureaux will receive around $65 million per week from the central bank.

The International Monetary Fund (IMF) said on Wednesday that the naira is over-valued by around 10 to 20 percent, and called for changes to exchange rate policy.

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