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UPDATE 2-Nigeria naira recovers from low on official market with c.bank help

Published 25/09/2020, 12:39
© Reuters.

(Adds naira closing rate)
By Chijioke Ohuocha
ABUJA, Sept 25 (Reuters) - Nigerian naira recovered from a
low of 385.50 per dollar on the official market on Friday after
the central bank sold dollars to stabilize the currency at its
preferred level, traders said.
The naira eased 1.2% against the U.S. dollar by the middle
of the trading session in thin volumes prior to central bank's
intervention. The currency ended the session at 381, a level it
has been stuck at since July.
The central bank on Tuesday cut interest rates by 100 basis
points to 11.5% to support an economy that contracted in the
second quarter. Analysts fear the additional liquidity created
by the rate cut could pile pressure on the currency. The naira eased to 467 per dollar on the black market on
Friday.
International lenders, such as the World Bank, have pressed
Nigeria to implement currency to qualify for budget support
loans after the novel coronavirus triggered an oil price crash
that slashed the government's income.

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