Naira gains N5 at parallel, 1.02% at interbank market •As banks kick-start dollar sale to BDCs

Nigeria’s currency  has strengthened by N5 against the American dollar at the parallel market. The naira  according to dealers gained strength to trade at N395/$1 on Monday, August 8, after it dropped on Friday, August 4, to N400/$1.

The British pounds at the same market exchanged for N510, while the naira was sold at N420 to one Euro.

This is even as the local currency at the interbank market also gained 1.02 per cent to settle at N315.66 to the dollar compared with average of N318.41/USD which it exchanged for on Friday.

Some currency traders attributed the rebound to the sales of the greenback to Bureau De Change operators by more Deposit Money Banks. They said banks agreed to sell at the inter-bank rate plus one per cent.

Commenting on the latest development, the President of the Association of Bureau de Change Operators of Nigeria (ABCON) Alhaji Aminu  Gwadabe,  who had earlier expressed optimism that the naira would rebound, said two banks on Friday indicated interest to sell the proceeds of international money transfer which they were asked to sell to BDCs, but more of them joined on Monday.

On the volume sold to them he said it was $15,000 per bid maximum, adding that the bigger banks  that were unable to give because of logistics settled their obligations on Monday.

Meanwhile, Godwin Emefiele, governor, Central Bank of Nigeria (CBN), was quoted on Friday to have said that there is no magic policy that can save the naira in the near term, adducing the nation’s penchant and appetite for foreign goods and services as the chief reason for the downward spiral of the value of the currency.

In an article, the CBN governor said that Nigeria does not have much of an economy since it hardly produces anything for both local consumption and export.

“It is either I do not understand economics and how exchange rates work or a vast majority of us Nigerians still don’t get how we have wrecked our country with our own curious choices.