The Naira continues
to rise against the US dollar as Deposit Money Banks reject cash deposit
of foreign currencies.
The source notes that the Nigeria’s currency had
appreciated against the dollar from 245 to 220 at the parallel market last week
after banks started denying their customers opportunity to make
cash deposits
of dollar, pound and euro into their domiciliary accounts.
On Sunday an anonymous forex trader stated: “We
expect the naira to appreciate further this week at the parallel
market. Banks have flooded the market with dollars and other foreign
currencies. This is making the naira to appreciate. There is still a huge stock
of dollars out there that the banks will be pushing into the parallel market
this week.”
Alhaji Aminu Gwadabe who is the president of Bureau De
Change Operators said that large amount of dollars in the market would make the
naira to appreciate further at the parallel market this week.
Last week Nigerian banks announced that they would no
longer collect cash deposits into domiciliary accounts.
Fidelity Bank Plc explained that the policy came from the
Central Bank of Nigeria (CBN) and it was only a temporary measure to curb
speculative activities.
Ladi Balogun, the CEO of First City Monument Bank also
stated: “Banks no
longer accept dollar cash due to large speculation on the currency. The lenders
would continue to receive dollar transfers from other banks.”
Godwin Emefiele, the Central Bank of Nigeria governor,
announced that the naira was appropriately priced at its current level of 197
to the dollar on the interbank market.
Over the past year the naira lost about 15 % against the
dollar with an official devaluation in November.
It also should be noted that after the CBN limited
importers’ access to dollars in order to save the external reserves, the
currency had weakened on the parallel market, falling as low as 245.
Better oh. Buhari cum Emefiele at work. Sai baba
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