Naira drops to 370 on lack of dollar supply

The naira depreciated against the United States dollar at the parallel market on Tuesday to 370, down from 368/dollar on Monday.

The local unit had closed at 367/dollar on Friday.

The development followed lack of dollar sale by the Central Bank of Nigeria on Monday. The CBN has been supplying dollar to the forex market through intervention on Mondays in the last few weeks. The exchange rate had hovered between 363/dollar and 365/dollar in recent weeks.

Economic experts said unless the CBN maintained its weekly supply of forex into the market, it might find it difficult to keep the naira below 370/dollar.