Effect of Nationwide Strike on the Money Market
The interbank money market was paralysed by the five day strike action, causing banks to shun foreign exchange offered by the Central Bank of Nigeria (CBN).
Throughout the strike period, there was no interbank transaction, as most treasurers stayed at home, while few went to work only for skeletal treasury functions.
The CBN still conducted foreign exchange auctions last monday and wednesday.
On Monday, it offered $250 million and $200 million on wednesday but demand to both offers was zero.
Consequently, the naira appreciated by 13 kobo on Wednesday as the official exchange rate dropped to n156.7 per dollar from 156.83 naira on monday.
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