The naira yesterday weakened against the US dollar losing 65 kobo at the inter-bank market to close at N163.60/$ compared to N162.95 traded the previous day, data from the Financial Markets Dealers Association (FMDA), have indicated.

This is in spite of the Central Bank of Nigeria’s (CBN) intervention of $266.5 million at its Wholesale Dutch Auction (WDAS) window.

The CBN yesterday offered $300 million but sold $266.5 million to 19 deposit money banks at its twice weekly WDAS at N155,76/$.

Analysts have attributed the naira depreciation to increased demand for the greenback by the end users.

Currency dealers said yesterday that limited dollar supply from oil companies had added more pressure on the naira along with the CBN’s decision, so far, not to sell dollars directly to lenders.

Naira has consistently remained under pressure in spite of the efforts of the CBN to tighten naira liquidity and shore up its value.

However, the naira remained stable at official, bureau de change and parallel markets closing at N155.76/$, N163.50 and N160.40/$.

Money markets yesterday experience liquidity squeeze as the Nigeria Inter-Bank Offer Rates (NIBOR) increased across tenor buckets.