EXPERTS REVEAL REASONS FOR NAIRA SLIDE AFTER CBN INTERVENTION

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[Abuja]–After the Central Bank of Nigeria (CBN)’s three weeks persistent intervention in the foreign exchange market, mainly the interbank, the naira has been appreciating against dollar in a steady pace.

However, operators on the parallel market woke up on Friday to witness N465 exchange per dollar, compared with N452, N455 and N458 in the three subsisting trading period.

This attributed to a loss of 1.5 per cent by the Nigerian local currency over dollar, a week after constant appreciation over foreign currencies, especially, the dollar

According to, the President of Association of Bureau De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, the reason for the slide of the Naira is due to the activities of commercial banks, who select customers they sell dollars to.

Gwadabe said, “contrary to CBN directive, the banks have refused to sell dollars, unconditionally, to the needful customers with savings accounts. This has made those so deprived go extra miles in sourcing hard currency at any cost for their needs.”

On the other hand, Mr. Clement Kujofun, a financial analysts, said that “the reason Naira will be shedding more weight is that Nigeria is in recession”, adding that trading at the interbank market saw the Naira sold at N305.25 to a dollar.

Kojofun added that the current intervention by CBN in the exchange market should be appreciated for its short term solution, adding that lasting solution will come when Nigeria’s foreign direct investment (FDI) resumes its status.

Other experts, who commented on the issue, advised Travelex and commercial banks to take the operators of BDCs into confidence, if the Naira is to sustain its initial rise in value since February 2017.




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