Nigerian naira ended to a record low on the interbank market on Friday ahead of the country’s central bank meeting to review interest rates in Africa’s biggest oil producer.The local unit closed at 176 naira against the dollar, declining by 1.2 percent.
The Nigerian Stock Exchange All Share Index (NGSEINDX) lost 2.1 percent to 33,428.76 in the worst performance among 93 primary indexes.
Foreign reserves dropped 2 percent this month as the Central Bank of Nigeria sold dollars to lenders to stem the naira’s slide. The regulator may increase its key rate from 12 percent next week to support the currency.
“Expectations are rising that the bank will throw in the towel and hike policy rates given the seeming futility of trying to keep the naira from depreciating, Gareth Brickman, a Johannesburg-based Africa analyst said in a note to clients.
Some currency users set limit price orders to buy dollars and come into the market depending on liquidity, dealers said.