The value of the naira continued to depreciate as the currency fell to a four-week low at the interbank market selling for 157.24 to the dollar as the Central Bank of Nigeria (CBN) cut back volume at yesterday's auction amidst rising demand.
The naira depreciated for a fourth day on higher demand for the US currency after the apex bank cut the size of its dollar sales this week, reducing supply.
The CBN sold $108.48 million at yesterday's auction, bringing sales this week to $120.30 million, a 38 per cent decline compared to $193.20 million which it sold last week.
The naira has been the best performing currency in Africa rising by 3.9 per cent last year, but began a decline in value last week selling as high as 160 to the dollar at the parallel market and 159 to the dollar at the Bureaux de Change.
According to analyst, this could be attributed to the rising demand by companies as they resumed business activities for the year.