Naira watch: Naira depreciates to N397/$ as CBN injects $240m
The naira yesterday depreciated further to
N397 per dollar in the parallel market even as
the Central Bank of Nigeria (CBN) injected
another N240 million dollars into the foreign
exchange market.
Of that amount, $90 million was to meet
requests for invisibles such as Business Travel
allowance/Perosnal Travel Allowance (BTA/
PTA), medical and school fees. The balance
of $150 million was given to authorized
foreign exchange dealers in the interbank
wholesale auction window.
Acting Director, Corporate Communications,
Department, CBN, Isaac Okorafor, disclosed
this in a statement issued yesterday, adding
that the apex bank had adjusted BDC sale
days to Tuesdays only to reduce logistical
difficulties.
He added that henceforth the apex Bank
would sell $10,000 only to low-end forex
dealers once a week, instead of the twice
weekly earlier announced.
He said, the CBN in a bid to further ease the
access of customers, has also directed all
banks to pay cash over the counter to desiring
foreign exchange customers.
While urging the banks to oblige the genuine
requests of customers, the spokesman advised
customers to report any uncooperating bank to
the CBN through available platforms.
It will be recalled that the CBN in the recent
months has made offers and releases to the
inter-bank foreign exchange market in its bid
to sustain forex rule supply to different
categories of users.
Meanwhile, the CBN spokesman expressed
optimism that the sum of $150 million offered
to authorized FOREX dealers in the interbank
wholesale window to meet the requests of
genuine wholesale customers would be fully
subscribed at the auction as was the case at
the last auction on March 28, 2017.
Vanguard survey revealed that the parallel
market exchange rate which closed at N390
per dollar last week rose to N397 per dollar at
the close of business yesterday, indicating N7
or 1.7 per cent depreciation.
Last week the parallel market exchange
initially dropped from N390 to N380 per dollar,
before rising again to N390 per dollar.
Bureaux de change operators who spoke to
Vanguard attributed the sudden reversal of the
naira, after six weeks of appreciation from
N520 per dollar to N480 per dollar, to scarcity
in the parallel market.
President, Association of Bureaux De Change
Association of Nigeria (ABCON), Alhaji Aminu
Gwadabe said: “The pressure is back on the
naira because there is scarcity in the market.
The banks are still not selling; they are
claiming that they have not received dollars
from CBN for forex sale via card to end-
users.” He however expressed optimism that
the increase dollar supply to BDCs, starting
from today will positively impact on the
parallel market exchange rate.
N397 per dollar in the parallel market even as
the Central Bank of Nigeria (CBN) injected
another N240 million dollars into the foreign
exchange market.
Of that amount, $90 million was to meet
requests for invisibles such as Business Travel
allowance/Perosnal Travel Allowance (BTA/
PTA), medical and school fees. The balance
of $150 million was given to authorized
foreign exchange dealers in the interbank
wholesale auction window.
Acting Director, Corporate Communications,
Department, CBN, Isaac Okorafor, disclosed
this in a statement issued yesterday, adding
that the apex bank had adjusted BDC sale
days to Tuesdays only to reduce logistical
difficulties.
He added that henceforth the apex Bank
would sell $10,000 only to low-end forex
dealers once a week, instead of the twice
weekly earlier announced.
He said, the CBN in a bid to further ease the
access of customers, has also directed all
banks to pay cash over the counter to desiring
foreign exchange customers.
While urging the banks to oblige the genuine
requests of customers, the spokesman advised
customers to report any uncooperating bank to
the CBN through available platforms.
It will be recalled that the CBN in the recent
months has made offers and releases to the
inter-bank foreign exchange market in its bid
to sustain forex rule supply to different
categories of users.
Meanwhile, the CBN spokesman expressed
optimism that the sum of $150 million offered
to authorized FOREX dealers in the interbank
wholesale window to meet the requests of
genuine wholesale customers would be fully
subscribed at the auction as was the case at
the last auction on March 28, 2017.
Vanguard survey revealed that the parallel
market exchange rate which closed at N390
per dollar last week rose to N397 per dollar at
the close of business yesterday, indicating N7
or 1.7 per cent depreciation.
Last week the parallel market exchange
initially dropped from N390 to N380 per dollar,
before rising again to N390 per dollar.
Bureaux de change operators who spoke to
Vanguard attributed the sudden reversal of the
naira, after six weeks of appreciation from
N520 per dollar to N480 per dollar, to scarcity
in the parallel market.
President, Association of Bureaux De Change
Association of Nigeria (ABCON), Alhaji Aminu
Gwadabe said: “The pressure is back on the
naira because there is scarcity in the market.
The banks are still not selling; they are
claiming that they have not received dollars
from CBN for forex sale via card to end-
users.” He however expressed optimism that
the increase dollar supply to BDCs, starting
from today will positively impact on the
parallel market exchange rate.
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