The naira on Wednesday lost N1.26k or
0.64 percent against the US dollar at the inter-bank market following
the Central Bank of Nigeria’s (CBN) policy restricting access to
foreign exchange by importers of certain items.
Consequently, after trading on
Wednesday, the local currency closed at N198.58k/$ compared with
N197.32k/$ the previous day, according to data from Financial Markets
Dealers Quotations (FMDQ).
On Tuesday, naira gained N1.34k or 0.67
percent over the US dollar at the inter-bank market after it weakened
against the US dollar by N1.24k or 0.63 percent on Monday.
The naira has come un- der pressure since the price of oil, Nigeria’s main export, plunged.
The central bank has spent $3.4 billion
to prop up the naira since it fixed the exchange rate in February, and
tightened trading rules to curb speculation.
Bismarck Rewane, man- aging
director/CEO, Finan- cial Derivatives Company Limited, said the new FX
policy by the CBN will reduce disposable income, increase pressure on
parallel markets as demand for FX by im- porter would be channelled
toward the parallel market.
Furthermore, he said the spread between
the inter- bank and parallel market will increase, as “administrative
management of the currency is not efficient. They should allow FX to
find its true value.”
HOPE MOSES-ASHIKE
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