Despite a cut on interest rates by the U.S. central bank, the local currency was unchanged against the greenback on Thursday.
The naira closed flat against the dollar in the parallel section of the forex market, trading at N1,660/$1. It also closed flat against the British pound, trading at N2,220/£1.
Fundamentals show that the Nigerian naira faces headwinds despite recent interest cuts by the U.S. Fed.
The CBN’s recent intervention in the country’s fragile market has done little to counteract the naira’s declining value, with the country’s oil production—a major source of foreign exchange—still at tepid levels.
Price action indicates that naira short sellers are firmly in control of the N1,600 support line in the unofficial black market and will likely face more selling pressure due to rising demand for foreign exchange, primarily for vacations, fuel imports, and foreign tuition.
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