There are indications that the naira, which hit 208
against the United States dollar on the streets of Lagos
on Friday, may drop further as politicians seek more of
the greenback to fund campaigns few weeks to the
general elections.
The naira had on Friday crashed against the US dollar
from 191 to 208 at the parallel market, otherwise known
as the black market.
Foreign exchange dealers told our correspondent on
Monday that the Central Bank of Nigeria’s stringent
requirements for purchasing dollars at the official and
interbank segments of the forex market had forced the
politicians to take to the Bureaux de Change and street
markets in recent times.
At least 60 per cent of the total demand for the dollar at
the BDCs and black markets is being fuelled by the
politicians who are currently stepping up preparations
for the February elections, according to findings.
The CBN had on Friday increased its weekly dollar sale
to each of the over 2,500 BDCs in the country from
$15,000 to $30,000, over six months after it slashed the
figure from $50,000 per week to $15,000.
But forex market officials on Monday said unless the
central bank increased the amount of dollar sale to the
BDCs, the naira might fall further against the greenback.
The dollar sold for between N207 and N208 on the
streets of Lagos and Abuja on Monday. At the interbank
market, it closed against the dollar at N191.20.
The Head, Investment and Research, BGL Plc, a research
and investment advisory firm, Mr. Femi Ademola, said
everything was still tied to the falling oil prices, adding
that the CBN’s inability to match the rising demand for
the dollar with supply was traceable to the nation’s
dwindling forex revenue.
He said a further devaluation of the naira after the
elections might be inevitable unless the price of crude
oil went up.
Ademola added that unless the price of oil rose, the CBN
might be forced to move the official midpoint of the
dollar from the current N168 to N200 after the elections.
Already, the CBN, in a bid to mitigate the pressure on
the naira, last week stopped banks from selling dollars
to the BDCs, while it increased its weekly dollar sale to
each of the operators from $15,000 to $30,000.
It also said dollar funds purchased at the interbank and
official segments of forex market by the banks must be
strictly used for funding Letters of Credit, Bills for
Collection and invisible transactions; and stopped dollar
sales to other approved buyers.
“The CBN’s decision to increase the dollar sale to the
BDCs from $15,000 to $30,000 is commendable but in
order to further calm the market and stop volatility of
the naira, the central bank needs to increase this
amount to at least $50,000 to each operator,” the Acting
President, Association of Bureau de Change Operators,
Mr. Aminu Gwadabe, told our correspondent on Monday.
He said the central bank needed to meet up with the
dollar liquidity demand in the market in order to calm
the market fully.
Asked if politicians were fuelling the demand at the
street and BDC markets, Gwadabe said, “We cannot rule
out the fact that politicians are fuelling the demand at
the street market because most of them prefer to provide
their gratification during this election period in dollars.”

Do u mean Sleeping Vs Death

Fash20:
Do u mean Sleeping Vs Death

nope.naira vs dollar

watchman111:
nope.naira vs dollar

its the same with Sleeping and Death

Fash20:
its the same with Sleeping and Death

hehehehe