The fall in the value of the naira is yet to abate as the local
currency exchanged for N370 to a dollar yesterday at the parallel
market.
It was observed that the fresh pressure on the naira since last week
Thursday has seen the currency fell further from N318 to N370 to a
dollar, an additional N52 margin.
While the Bankers Committee meeting held in Abuja last week Thursday
was considering the inclusion of medical tourism and school fees
payment abroad in the prohibition list, TheCable colloquium in Lagos,
had some of its participants supporting the policy, as well as
opposing devaluation.
Meanwhile, the foreign exchange reserves have fallen to $27.81 billion
from $28.95 billion in barely six weeks, representing a decline of
$1.14 billion.
The Director of Corporate Communications, Central Bank of Nigeria
(CBN), Alhaji Ibrahim Mu'azu, said the reserves would have decreased
to about $20 billion, but for measures adopted.
President Muhammadu Buhari, while in London, said that his government
decided to stop the sale of foreign exchange to bureau de change
operators because of fraudulent acts perpetrated by some top officers
of the CBN.
According to him, some directors of CBN own bureau de change and when
foreign exchange comes, they take it to their companies and give
government the change.
But the Acting President of the Association of Bureau De Change
Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, told The Guardian
that there is high-level leakages in the system, causing the pressure,
adding that devaluation is not totally the answer.
He said government should put mechanism in place to ensure that
whatever item everyone demands the dollar for, is actually imported
and that quantity declared, alleging that some importers are also
involved in the round-tripping.
According to Mu'azu, the renewed pressure in the market could be
attributable to announcement effect and CBN is very much aware of the
market development and has been responding accordingly, raising hope
that as much as foreign exchange earnings improve, market
interventions would also increase.
Read More »
currency exchanged for N370 to a dollar yesterday at the parallel
market.
It was observed that the fresh pressure on the naira since last week
Thursday has seen the currency fell further from N318 to N370 to a
dollar, an additional N52 margin.
While the Bankers Committee meeting held in Abuja last week Thursday
was considering the inclusion of medical tourism and school fees
payment abroad in the prohibition list, TheCable colloquium in Lagos,
had some of its participants supporting the policy, as well as
opposing devaluation.
Meanwhile, the foreign exchange reserves have fallen to $27.81 billion
from $28.95 billion in barely six weeks, representing a decline of
$1.14 billion.
The Director of Corporate Communications, Central Bank of Nigeria
(CBN), Alhaji Ibrahim Mu'azu, said the reserves would have decreased
to about $20 billion, but for measures adopted.
President Muhammadu Buhari, while in London, said that his government
decided to stop the sale of foreign exchange to bureau de change
operators because of fraudulent acts perpetrated by some top officers
of the CBN.
According to him, some directors of CBN own bureau de change and when
foreign exchange comes, they take it to their companies and give
government the change.
But the Acting President of the Association of Bureau De Change
Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, told The Guardian
that there is high-level leakages in the system, causing the pressure,
adding that devaluation is not totally the answer.
He said government should put mechanism in place to ensure that
whatever item everyone demands the dollar for, is actually imported
and that quantity declared, alleging that some importers are also
involved in the round-tripping.
According to Mu'azu, the renewed pressure in the market could be
attributable to announcement effect and CBN is very much aware of the
market development and has been responding accordingly, raising hope
that as much as foreign exchange earnings improve, market
interventions would also increase.
