In
continuation of its strategy to further strengthen the value of the naira, the
Central Bank of Nigeria (CBN) is set to pump more United States dollars into
the foreign
exchange market this weekend.
A source at
the apex bank revealed that the CBN was set to release an additional $350m into
the forex market.
The move will
push the total amount that the CBN has pumped into the market this week to
about $570m, in its bid to further crash the value of the dollar.
Meanwhile, the
naira on Friday depreciated against the dollar at the parallel market after
posting days of appreciation.
The News
Agency of Nigeria (NAN) report that the nation’s currency lost N7 to exchange
at N465 to a dollar after closing at N458 on Thursday, while the Pound Sterling
and the Euro traded at N542 and N480.
While at the
Bureau De Change (BDC) window, the Naira traded at N399 to a dollar, CBN
controlled rate, while Pound Sterling and the Euro closed at N610 and N520.
Trading at the
interbank market saw the Naira sold at N305.25 to a dollar.
NAN reports
that the CBN injected over 500million dollars into the market, to boost
liquidity, but the Naira continued to depreciate.
Traders in the
market expressed concern about the depreciation of the Naira in spite the gains
earlier recorded.
Alhaji Aminu
Gwadabe, President, Association of Bureau De Change Operators of Nigeria
(ABCON), said there was need for a review of the distribution mechanism.
“Many banks
are selling to only clients with current accounts and not to savings account
holders and there is also increasing demand for forex from our neighbouring
countries.
“The different
applicable exchange rates and volumes with Travelex and banks need to be
harmonised and with that of BDCs to reduce friction,” Gwadabe said.
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