The naira continues to rise against the US dollar this
week as Deposit Money Banks reject cash deposit of
foreign currencies, The Punch reports.
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 (CBN)
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..
week as Deposit Money Banks reject cash deposit of
foreign currencies, The Punch reports.
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 (CBN)
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..
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