FOREX: Naira Falls To N397/$ Despite CBN Effort

FOREX: Naira Falls To N397/$ Despite CBN Effort

Despite that the Central Bank of Nigeria injected $240 million to the country foreign exchange market on Monday, the Naira depreciated to N397 to a dollar.

In a statement by the Acting Director, Corporate Communications, Department, CBN, Isaac Okorafor, out of the amount, the sum of $90 million is expected to meet the request for Business Travel Allowance, BTA, School fees and medicals.

The CBN gave the sum of $150 million to authoriszed foreign exchange dealers in the interbank.

According to the statement, instead of the apex Bank selling dollars to dealers twice in a week, it would sell $10,000 only to low-end forex dealers once a week.

The statement also directed all commercial banks to sell physical cash to desiring foreign exchange customers.

It also directed customers to report any bank that fails to comply with the directive through the appropriate medium so as to sanction such bank.

Naira maintained steady rise last week with N390 per dollar but fell yesterday to N397. In other words, the naira depreciated by 1.7 per cent within a week.

Last week the parallel market exchange initially dropped from N390 to N380 per dollar, before rising again to N390 per dollar.

Operators of Burea De Change attributed the fall to lack of dollars in circulation and now that the CBN had injected more, there are indications that naira may appreciate more.

President, Association of Bureaux De Change Association of Nigeria (ABCON), Alhaji Aminu Gwadabe lamented that most banks hoarded the dollars despite CBN intervention.