Naira closes at 305 in interbank market

Nigeria’s Naira closed at 305 to the US Dollar at the interbank market trade on Friday.

The Naira which has been on a free fall this week also closed at 425 in the parallel market.

The naira has been under a persistent pressure as dollar scarcity continues to weigh on the local currency at both the parallel and interbank forex markets.

Economic and financial experts said inadequate forex liquidity at the interbank market was taking a toll on the parallel market.

Nigeria was Africa’s largest economy and its top oil producer, but its public finances have suffered as the price of crude oil dropped around the world.

The economic crisis has also worsened due to attacks on the country’s pipelines by a militant group known as the Niger Delta Avengers.

Meanwhile, the interbank lending rate fell to around 16 percent after the disbursal of July budgetary allocations to government agencies.

Total bank surplus cash with the central bank stood at 118 billion naira on Friday, better than the 62 billion naira at the close of last week.

Source: News Express.

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