By Our Reporter 1 hour ago

Naira fell for the first day in three against the dollar on speculation the Central Bank of Nigeria (CBN) can’t meet demand for the greenback from importers after returning the naira to its target band at an auction yesterday.
The naira according to Reuters news retreated as much as 2.2 per cent in the interbank market to N159.475 per dollar, before trading 2 per cent weaker at N159.15 by 12:34 p.m. in Lagos. The apex bank met demand in full for the first time in 26 auctions yesterday, selling $591.67 million and bringing the currency back into its target band of 3 percentage points below or above N150 per dollar. The naira was the world’s second-worst performer yesterday against the dollar after Gambia’s dalasi.
CBN Governor Lamido Sanusi increased the key lending rate by 2.75 percentage points and reiterated the naira target range at an extraordinary meeting October 10. The bank raised the cash-reserve ratio to 8 per cent from 4 per cent. The naira had its biggest one-day rally in almost eight years after the decision.
There’s been “large demand for foreign currency from importers, which has pushed the likes of the naira weaker,” Dina Ahmad, a London-based emerging-markets strategist at BNP Paribas SA, wrote yesterday in e-mailed comments. “The central bank has stepped up its foreign-exchange auction, but I don’t think that they are comfortable with maintaining the size at these levels - I think that’s partly the reason why they resorted to a sharp rate hike.”

http://www.thenationonlineng.net/2011/index.php/business/22821-naira-falls-on-speculation-cbn-can%E2%80%99t-meet-dollar-demand.html

The pressure on the naira will continue for as long as the demand for dollars is high (no thanks to the country's import dependence) and the supply of dollars (courtesy of low manufacturing base)is low; if they like, let them continue to artificially defend the naira with 'exhaustible' external reserves.

everybody needs dollar even beggars