Nigeria's central bank weakens naira on futures market, spot market eases
- The currency has been losing ground on the derivatives market, mirroring weaknesses on the spot and black markets.
- The currency eased on the non-deliverable forwards market, with the one-month contract quoted at 406.50 naira on Wednesday after it opened at 399 naira.
ABUJA: Nigeria's central bank weakened the naira on the futures market across maturities, exchange data showed on Wednesday, as the currency dropped to a record intra-day low on the over-the-counter spot market.
The currency has been losing ground on the derivatives market, mirroring weaknesses on the spot and black markets, where the naira trades more freely.
The longest five-year naira futures contract weakened to record low of 630.30 naira while the contract with three-weeks to maturity eased 7.01 naira to 412.14 naira, exchange data showed.
The currency eased on the non-deliverable forwards market, with the one-month contract quoted at 406.50 naira on Wednesday after it opened at 399 naira.
Dollar demand has been growing from importers and foreign investors seeking to repatriate funds, piling pressure on the naira. Nigeria repaid a $500 million eurobond last week.
The naira dropped to a record intra-day low of 416.95 per dollar on the over-the-counter spot market. It traded at 480 naira on the black market, a premium of 20% to the official rate of 381 naira set by the central bank last July.
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