The naira rose further from 222 to 216 at the
parallel market on Monday as Deposit Money
Banks continued to reject cash deposits in dollars.
The Central Bank of Nigeria had said it supported
the move by the banks, which was aimed at
discouraging speculation on the local currency.
The latest rebound of the local currency has made
the naira to strengthen by 4.1 per cent from 225 to
the dollar on Friday.
It was quoted at 245 some weeks ago.
On the official interbank market, the naira traded at
199, very close to the central bank’s pegged rate
of 197, Reuters reported.
The Acting President, Association of Bureaus de
Change Operators, Alhaji Aminu Gwadabe, said,
“Banks are rejecting dollar deposits … they are not
able to transfer excess liquidity to their
correspondent banks abroad, which is restricting
importers from using domiciliary accounts.”
The naira had weakened at the parallel market to
as much as 245 to the dollar on persistent dollar
shortages some weeks ago.
The CBN had last month limited importers’ access
to dollars on the official interbank market to buy a
wide range of goods, in order to save its reserves.
After the restrictions, importers bought dollars on
the unofficial market and deposited them in their
bank accounts for transfers abroad, Gwadabe said.
But now banks are rejecting cash dollar deposits
“due to large speculation on the currency,” the
Chief Executive Officer, First City Monument Bank
Limited, Mr. Ladi Balogun, said.
Lenders will continue to receive dollar transfers
from other banks.
The restrictions have frustrated companies that
need dollars for imports. The central bank has
rejected the idea of loosening the curbs, saying it
could not adopt an “indeterminate policy” of
currency depreciation and that the naira was
“appropriately priced” on the interbank market.
Gwadabe said there was excess liquidity of around
$1bn on the parallel market.
A currency analyst at Ecobank Nigeria, Mr. Kunle
Ezun, said if the trend continued, the naira might
rise to as much as 200 against the dollar.
He believes the move by the banks is good as it
helps to check the activities of speculators.
The Head, Investment and Research, Afrinvest West
Africa, Mr. Ayodeji Ebo, said the trend would help
the central bank to gauge the true value of the
naira in the event of a possible devaluation in the
near future.
“If there is a convergence between the interbank
and parallel market, the CBN may possibly review
its restrictions imposed on the forex market,” he
added.
http://yesreport..com/2015/08/naira-now-216-on-banks-dollar-rejection.html?m=0

lalasticlala

Change is indeed here.