Monday’s
stoppage of foreign exchange sales to Bureau De Change operators by the Central
Bank of Nigeria failed to lift the naira on Tuesday as the currency exchanged
for 300 against the United States dollar in Kano, 290 in Lagos and 292 in
Abuja.
Financial
experts said the naira would decline further, while private sector operators
described the move as a welcome development.
The
ban was announced on Monday, when naira trading at 285 against the dollar at
the parallel market from 278 on Friday.
According
to The Acting President, Association of Bureau De Change Operators, Alhaji
Aminu Gwadabe, in a telephone interview that the currency traded against the
greenback at 300, 290 and 292 in Kano, Lagos and Abuja a day after the CBN
announcement.
“There
is cut of (dollar) supply to the market.
The
BDC sub-sector has been murdered. We are not coping. The naira is going to head
northwards. There is no solution in sight,”
Gwadabe
lamented.
The
Head of Investment Research, Afrinvest West Africa Limited, Mr. Ayodeji Ebo,
said the stoppage of Forex sale to the BDCs meant that the CBN wanted everybody
to apply to the banks for dollars.
He
stated, “But we feel the pressure now will move from the BDCs to the parallel
market. We will see significant spike in the value of the naira at the parallel
market because the little supply to the BDCs have also helped to cushion the
demand at the parallel market.
“It
will further compound or increase the spread between the parallel market and
the inter bank market. So, it will also increase round-tripping
And
unethical practices within the financial system.”
On
the lifting of the ban on cash deposits into domiciliary accounts, Ebo said, “I
am still skeptical about how this will work except they are also assuring us
that if you deposit it, you can consummate business with it........”
culled .stelladimokokorkus
culled .stelladimokokorkus
No comments:
Post a Comment